The institutionalization of the cryptocurrency market means Bitcoin (BTC) is no longer viewed as a niche investment and growing adoption is causing reluctant investors to reconsider the asset class, WisdomTree said Monday in a report looking at cryptocurrency trends to 2025. .
The investment manager noted that portfolios allocated to Bitcoin have consistently outperformed portfolios that do not hold the world’s largest cryptocurrency.
Asset managers must integrate digital assets into multi-asset portfolios. Otherwise, “there is a risk of being left behind in a rapidly evolving financial environment,” said analyst Dovile Silenskyte. He added that Bitcoin adoption is expected to increase this year as more customers demand exposure to the asset class. .
The launch of cash exchange-traded funds (ETFs) in the United States has helped make cryptocurrencies more mainstream in 2024. This momentum is expected to continue this year as the U.S. regulatory environment becomes more friendly under President Trump and more countries approve exchanges. WisdomTree said Solana has trading products (ETPs) for altcoins such as SOL and XRP.
“This wave of altcoin ETPs will expand the diversity of cryptocurrency investment opportunities and further integrate cryptocurrencies into the global financial system,” Silenskyte wrote.
“The role of the Ethereum blockchain as the backbone of decentralized finance (DeFi), non-fungible tokens (NFTs), and Web3 is unrivaled,” the report said, but scalability issues remain an issue.
Nonetheless, recent upgrades, including Dencun, are expected to drive layer 2 adoption of blockchain, the report noted.
Stablecoins are becoming “indispensable to the global financial system,” and networks like Solana are ideal for stablecoin payments and remittances, WisdomTree said.
Tokenization, the process of placing ownership of real-world assets on a blockchain, will expand dramatically in 2025 and transform the industry from private equity to venture capital, the report added.
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