Why Sovereign Wealth Funds May Be Moving Into Crypto: Eric Trump

LiveBTCNews
BTC-0,42%

Eric Trump says sovereign funds are adopting crypto due to currency risk, energy use for mining, and rising demand in emerging markets.

Sovereign wealth funds are showing interest in cryptocurrencies as governments review currency stability and financial systems.

Eric Trump discussed this trend during a Yahoo Finance interview, pointing to global economic stress and uneven access to banking services.

Growing Interest From Sovereign Wealth Funds

Eric Trump said sovereign wealth funds are entering crypto markets due to concerns about fiat currency strength.

He stated that many funds see traditional currencies weakening amid debt growth, inflation pressure, and reduced public trust.

During the interview, Trump described the current financial environment as unstable.

He said some currencies are viewed as unreliable because of political risk and poor fiscal management. This environment has pushed funds to explore alternative assets.

Eric Trump: Crypto More Needed in Developing World Than US

On November 14, Eric Trump said in an interview with Yahoo Finance Executive Editor Brian Sozzi that sovereign wealth funds are rapidly entering crypto because they see a world full of “junk currencies,” corrupt… pic.twitter.com/jNbeO9MhF0

— Wu Blockchain (@WuBlockchain) January 25, 2026

He also noted that sovereign funds tend to move early when systems change. Crypto assets are seen as liquid, transferable, and independent of national banking controls.

Developing Economies Driving Crypto Demand

Trump said demand for crypto is stronger in developing regions than in the United States. He explained that many countries lack modern banking systems and dependable payment infrastructure.

In these regions, digital assets can move value without relying on local banks. This can support cross-border trade and personal savings where services are limited or costly.

Trump said, “Crypto solves problems where banks do not exist or cannot be trusted.” He added that this need explains faster adoption outside developed economies.

Energy Use, Mining, and National Reserves

Trump stated that some government-backed funds are using excess seasonal energy for Bitcoin mining. This includes surplus winter energy that would otherwise go unused.

He explained that mining allows states to turn excess power into a tradeable asset. This approach is being tested by several countries with large energy resources.

Trump also said some governments have added Bitcoin to national reserves. He noted this step reflects interest in assets outside traditional reserve currencies.

Regional Activity and Financial Systems

According to Trump, Asia is leading in crypto adoption among institutions. He pointed to strong participation from funds and firms across several Asian markets.

He said these regions are building systems that support faster payments and lower costs. Crypto platforms can settle transactions without multiple intermediaries.

Trump said digital assets reduce reliance on large banks. He added that blockchain systems can increase transparency and reduce transaction delays across borders.

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)