Hector McNeil, co-chief executive of HANetf, shared his perspective on bitcoin's all-time high in an interview with Proactive.
McNeil predicted a rise to $150,000 by mid-2024, fuelled by increased involvement from institutional investors and political momentum following president-elect Donald Trump's reelection.
McNeil also emphasised the defence sector’s potential, driven by NATO spending and the Ukraine reconstruction efforts.
He highlighted HANetf’s NATO-focused ETF, which has grown over 50% in nine months.
The uranium sector also offers promise, McNeil said, pointing to HANetf’s URNM and URNJ ETFs. With constrained supply and rising demand, coupled with innovations like mini nuclear reactors, he called uranium a compelling long-term opportunity.
Proactive: Hector, very good to speak with you. You called Bitcoin above $100,000, and it looks like that Trump trade is playing out. We had Bitcoin above $100,000 today. Do you think it has further legs?
McNeil: Afternoon, Stephen. Yes, I do. I think what's happening before our eyes is the democratisation of getting involved in the crypto markets. Over the past six months, we've seen professional investors like endowments, pension funds, governments, and institutional investors getting involved. More retail investors are also joining.
This has driven us to $100,000, and I believe it could go to $150,000 by mid-year next year. The momentum is strong, with Bitcoin making political headlines—Trump even bought a coffee using Bitcoin. The Biden administration was less supportive of crypto, but now the political and market conditions seem favourable for continued growth.
Proactive: How do you see crypto performing as an asset class in 2025? Could it outperform others?
McNeil: I think it could, given its lack of correlation with other asset classes, which investors find appealing. Ethereum is an interesting play, particularly with its staking opportunities. We also have a great MSCI Top 20 Index ETF featuring the top 20 crypto coins, which simplifies investment decisions for those unsure which coins will succeed. Bitcoin will likely lead this trajectory.
Proactive: Trump’s presidential win has impacted Bitcoin. What about the defence sector?
McNeil: Defence is particularly interesting. There’s speculation about Trump potentially forcing NATO members to spend more on defence or even removing the US from NATO. Either way, defence spending will increase.
Additionally, the ongoing situation in Ukraine could lead to significant investment in rebuilding and modernising its defence infrastructure, with potential parallels to Israel’s advanced missile technology.
Companies like British Aerospace, Lockheed Martin (NYSE:LMT), and Rheinmetall (ETR:RHMG) are already benefiting. For example, Rheinmetall is planning a production facility in Ukraine. Our NATO-focused ETF, which includes these companies, has risen over 50% in nine months. Defence is a strong area for long-term investment.
Proactive: What about oil, gas, and uranium sectors? How are they positioned?
McNeil: Our midstream energy ETF, MMLP, is an interesting play. It focuses on infrastructure, such as pipelines, which are critical for moving oil and gas. Trump’s administration will likely liberalize licensing, spurring investment. This sector has seen significant growth, and MMLP has nearly doubled in size this year.
Regarding uranium, our URNM ETF is unique, holding 80% equities and 20% physical uranium. Trump’s pro-nuclear stance, coupled with increasing demand for clean energy and supply constraints—like Russia cutting off uranium supply to the US—makes uranium a strong area.
Additionally, innovations like Rolls-Royce’s mini nuclear reactors highlight the sector’s potential. Our junior uranium ETF, URNJ, offers a purer play but is more volatile.
Proactive: Trump has also mentioned higher tariffs and on-shoring. What are your thoughts?
McNeil: Trump’s focus on bringing manufacturing back to the US aligns with trends we’ve seen under Biden as well. While the global supply chain remains integral for certain industries, on-shoring is a theme worth watching. We don’t currently offer an ETF in this space, but it’s an area of interest for future opportunities.