Institutional Investor Engagement and Supportive Regulations to Propel Asset Class Growth in 2025
ZURICH, 9 December 2024 – 21Shares, a leader in the issuance of exchange traded products (ETPs), has unveiled its 2025 State of Crypto Market Outlook, offering an in-depth analysis of the digital asset space and projecting robust growth for the sector in the upcoming year.
Highlights from the 21Shares 2025 Outlook
Fueled by rising institutional interest, significant approvals of cryptocurrency ETPs in the United States, and favorable macroeconomic dynamics, the report outlines several key predictions:
- Nation-States Adopting Bitcoin: A notable trend is emerging as countries begin to view Bitcoin as a strategic reserve asset. The report suggests that nations such as Argentina may leap forward in this area in 2025.
- Bitcoin’s Continued Ascent: Anticipating growth, 21Shares predicts that the total value locked in Bitcoin will exceed $10 billion in 2025, thereby enhancing its function beyond merely being a store of value.1
- Ethereum’s Revenue Renaissance: By 2025, Ethereum is positioned to reclaim its revenue levels, potentially achieving over 100% of its growth targets thanks to strategic Layer 22 developments.
- Surge in Institutional ETP Adoption: With landmark decisions to approve Spot Bitcoin ETFs in the U.S., along with increased global acceptance, crypto ETPs could amass a remarkable $150 billion in assets under management (AUM), with at least one U.S. Bitcoin ETF likely joining the ranks of the top 25 largest ETFs globally.
- Enhanced Integration of Stablecoins: Recognized for their compelling use case, stablecoins will see deeper integration into traditional sectors. 21Shares anticipates that nation-states, banks, and established Web2 firms will increasingly adopt or create their own stablecoins.
Optimism Amidst a Shifting Landscape
“European markets have led the charge in digital asset adoption, but the U.S. is rapidly enhancing its position as a strong player in this arena,” remarked Adrian Fritz, Head of Research at 21Shares. “We foresee a positive shift in the crypto market in 2025, driven by a more supportive regulatory landscape under new governance, which will likely accelerate adoption and promote unprecedented growth in the sector.”
Record Growth for 21Shares
The optimistic outlook aligns with 21Shares’ ongoing success, as the firm recently crossed the $10 billion mark in assets under management. As a sign of its expansion, 21Shares will be welcoming a new set of executives to facilitate growth in 2025.
A Wave of Institutional Interest
The firm’s achievement of the $10 billion AUM milestone emphasizes the rising institutional interest and the establishment of crypto ETPs as a recognized global asset class. In 2024’s last two quarters, investments from institutional and wealth advisory holders nearly doubled, paving the way for further growth and adoption of digital assets in the new year. This growth will be fueled by clearer regulations, user-friendly crypto offerings, and the emergence of new sectors that invite widespread curiosity from investors across the globe.
Conclusion
The predictions and insights shared by 21Shares highlight a transformative year ahead for the cryptocurrency space, characterized by increased legitimacy, institutional engagement, and enhanced regulatory support.
About 21Shares
21Shares is a pioneering force in the crypto exchange-traded product space, aiming to make cryptocurrency accessible to investors while bridging the gap between traditional and decentralized finance. Since the introduction of the world’s first physically-backed crypto ETP in 2018, 21Shares has built a robust track record of creating crypto ETPs listed on major global securities exchanges, backed by industry-leading research and client service.
Important Disclaimer
The information provided herein does not constitute an offer to sell or solicit any offers to buy securities or financial instruments in any jurisdiction, including the U.S. Forward-looking statements may not guarantee future performance and involve inherent risks and uncertainties. 21.co and its affiliates bear no responsibility for any inaccuracies or omissions in the information contained herein, which should not be considered legal, tax, or other advice.
1Definition: An asset that retains purchasing power and can be reused; it can be saved, retrieved, and exchanged at a later date.
2Definition: An off-chain system or technology designed to enhance blockchain capabilities.
