Swiss ETP issuer predicts another nation to adopt Bitcoin as reserve, Ethereum resurgence in 2025

As a seasoned crypto investor with over a decade of experience navigating the volatile and dynamic world of digital assets, I find the 21Shares’ “2025 State of Crypto Market Outlook” both intriguing and plausible. Having weathered several market cycles, I have learned to appreciate the wisdom in taking informed predictions with a grain of salt.

21Shares predicts a groundbreaking year for cryptocurrencies in 2025, with expectations that Bitcoin will continue to grow, Ethereum‘s income will recover, and the development of stablecoins will broaden.

By the year 2025, it’s expected that cryptocurrency investment products, which are traded like stocks, will manage over $150 billion in assets. This projection is based on a report by 21Shares, titled “2025 State of Crypto Market Outlook,” published on December 9th. The report highlights several factors fueling this growth, such as increasing institutional interest, approvals of crypto investment products in the U.S., and advantageous macroeconomic circumstances.

It’s anticipated that more nations may begin using Bitcoin (BTC) as a reserve asset, with countries such as Argentina possibly joining the trend. Moreover, the report suggests that the total value locked in Bitcoin could exceed $10 billion by 2025, suggesting its expanding usefulness beyond just being a store of value.

Adrian Fritz, the research chief at 21Shares, pointed out that although European markets have been leaders in embracing digital assets recently, the United States is rapidly gaining ground and is emerging as a significant player in the digital assets sector, as more investors show an interest in this investment class.

As a researcher delving into the crypto sphere, I anticipate a rebound in Ethereum’s (ETH) financial growth. According to predictions by 21Shares, this digital currency is poised to not only recover its revenue levels but also exceed them substantially, potentially surpassing a staggering 100% of its projected growth. This optimistic outlook is primarily driven by strategic integrations at the layer 2 level.

The forecast suggests that traditional financial institutions and web2 heavyweights will embrace stablecoins more extensively due to their potential as one of the most convincing applications of cryptocurrency, demonstrating a perfect fit between product and market. Moreover, 21Shares anticipates significant growth in 2024, exceeding $10 billion in managed assets, with the announcement that they plan to recruit new executive teams next year to fuel their business expansion in 2025.

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2024-12-09 13:00