Crypto convert Trump sparks bitcoin price rise

As Donald Trump is sworn in as 47th President of the United States, it is time for crypto proponents to rejoice.

Once a sworn enemy of digital assets, Trump is now the self-declared Crypto President, promising favourable legislation, a considerable bitcoin reserve, and was the first presidential candidate to accept campaign donations in crypto.

This week bitcoin hit an all-time high of USD109,000 as investors bet that the new President would make good on his pledges, and following the news that both Trump and the First Lady Melania have launched their own crypto coins.

While not without controversy, digital assets are proving increasingly popular with institutional investors drawn by portfolio diversification, high growth potential and the emergence of new financial opportunities within the crypto ecosystem.

This week we hear from Peter Curk, CEO, Iconomi, a crypto asset management platform, who says he has seen significant interest growth in crypto over the past few years.

"There was a lot of hesitation in the early days, but now financial advisers, wealth managers and businesses embrace crypto as a legitimate addition to their clients’ portfolios."

However, a favourable regime in the States may not be replicated elsewhere, and cryptocurrencies come with multiple risks spanning across volatility, technological vulnerabilities, and operational challenges.

As such, investors would be wise to proceed with caution.

IAM spoke with Matt Pells, Product Manager, Funds Administration of Bravura Solutions, who has noted a sea-change in how their clients want to work with them. Pells predicts that as the technology advances, there will be more collaboration as there will be no one solution from one firm so partnering will be more important particularly as new asset classes, such as crypto, appear and they want to go in as quickly as possible."

As Storm Éowyn threatens to wreak havoc across Ireland, this week we bring you an article from Seb Beloe, Partner and Head of Research at WHEB Asset Management, who warns that the plethora of climate-related disasters must be taken seriously by investors.

Of course, this warning is nothing new, but Beloe argues the majority of climate mitigation strategies are based on the assumption the world will warm at no more than 1.5 degrees Celsius on average.

And such an assumption looks optimistic.

According to a June 2024 report the World Meteorological Organization there is an 80 per cent likelihood that the annual average global temperature will temporarily exceed 1.5°C above pre-industrial levels for at least one of the next five years.

WMO Deputy Secretary-General Ko Barrett says more must be done – and urgently - to cut greenhouse gas emissions, "or we will pay an increasingly heavy price in terms of trillions of dollars in economic costs".

Beloe points to the myriad opportunities for investment directed towards climate adaptation and notes that WHEB introduced a Climate Adaptation thematic early in 2024 which invests in companies that help businesses adjust to extreme weather events.

And given the apocalyptic scenes across Los Angeles this month; the appalling floods in Spain, Poland, the Czech Republic, Romania, Austria and Italy last year; and the droughts in Southern Africa, such investment cannot come soon enough.

Gill Wadsworth, Editor, Institutional Asset Manager

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