The institutionalization of crypto markets means that bitcoin (BTC) is no longer considered a niche investment, and increased adoption is forcing hesitant investors to reconsider the asset class, WisdomTree said in a report Monday, which looked at crypto trends for 2025.
The investment manager noted that portfolios with allocations to bitcoin are consistently outperforming those that don’t hold the world’s largest cryptocurrency.
Asset managers want to integrate the virtual asset into multi-asset portfolios, but otherwise “threaten to be left behind in a converting currency landscape,” wrote analyst Dovile Silenskyte, adding that Bitcoin adoption is expected to grow this year by as more clients request exposure to the asset class. Training
The launch of spot exchange-traded funds (ETFs) in the U.S. helped take crypto more mainstream in 2024. This momentum is expected to continue this year as the regulatory environment becomes more friendly in the U.S. under President Trump, and as more countries approve exchange-traded products (ETPs) for altcoins such as solana’s SOL and XRP, WisdomTree said.
“This next wave of altcoin ETPs will expand the diversity of cryptocurrency investment opportunities and further integrate cryptocurrencies into the global monetary system,” Silenskyte wrote.
The Ethereum blockchain’s role as “the backbone of decentralized finance (DeFi), non-fungible tokens (NFT), and Web3 is unparalleled,” the report states, but its scalability is an issue.
Nonetheless, recent upgrades, Dencun, are expected to drive Layer 2 adoption on the blockchain, the report notes.
Stablecoins are “becoming indispensable to the global monetary system” and networks like Solana are ideal for stablecoin bills and remittances, WisdomTree said.
Tokenization, the process of putting the ownership of real world assets on the blockchain, will expand dramatically in 2025, and will transform industries from private equity to venture capital, the report added.
Read More: Stablecoin Deals and China and Europe Will Make US With Bitcoin Reserve: Wintermute Predictions
Will Canny is an experienced market reporter with a demonstrated history of working in the financial services industry. He’s now covering the crypto beat as a finance reporter at CoinDesk. He owns more than $1,000 of SOL.
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