The institutionalization of crypto markets means that bitcoin (BTC) is no longer considered a niche investment, and its growing adoption is forcing hesitant investors to reconsider the asset class, WisdomTree said in a report on Monday, which looked at crypto trends for 2025.
The investment manager noted that portfolios with allocations to bitcoin consistently outperform those that do not hold the world’s largest cryptocurrency.
Asset managers need to integrate the digital asset into multi-asset portfolios, otherwise “they risk falling behind in a rapidly changing financial landscape,” wrote analyst Dovile Silenskyte, adding that Bitcoin adoption is expected to grow this year as more clients demand exposure to the asset class. .
The launch of spot exchange-traded funds (ETFs) in the United States helped bring crypto mainstream in 2024. This momentum is expected to continue this year, as the regulatory environment becomes friendlier in the United States under President of Trump and more and more countries approve the exchanges. -traded products (ETPs) for altcoins such as SOL and XRP from Solana, WisdomTree said.
“This next wave of altcoin ETPs will expand the diversity of crypto investment opportunities and further integrate cryptocurrencies into the global financial system,” Silenskyte wrote.
The Ethereum blockchain’s role as “the backbone of decentralized finance (DeFi), non-fungible tokens (NFTs), and Web3 is unmatched,” the report states, but its scalability issues remain a problem.
Nonetheless, recent upgrades, including Dencun, are expected to drive Layer 2 adoption on the blockchain, the report notes.
Stablecoins are “becoming indispensable to the global financial system” and networks such as Solana are ideal for stablecoin payments and remittances, WisdomTree said.
Tokenization, the process of placing ownership of real-world assets on the blockchain, will grow significantly in 2025 and transform industries from private equity to venture capital, the report adds.
Read more: Stablecoin Offers and China and Europe to Follow US with Bitcoin Reserve: Wintermute Forecast
