According to a report by CoinDesk, American asset management firm WisdomTree on Monday explored cryptocurrency trends for 2025. Analysts stated that the institutionalization of the cryptocurrency market means that Bitcoin (BTC) is no longer viewed as a niche investment. As adoption rates rise, hesitant investors are being compelled to reconsider this asset class.
Cryptocurrency adoption rates will continue to grow. WisdomTree noted that portfolios that allocate Bitcoin consistently outperform those that do not include the cryptocurrency. Analyst Dovile Silenskyte wrote that asset management firms need to incorporate digital assets into multi-asset portfolios, or they risk falling behind in a rapidly evolving financial landscape. She added that as more clients seek exposure to this asset class, Bitcoin adoption is expected to increase this year.
The launch of cryptocurrency spot exchange-traded funds (ETFs) in the United States is helping to further mainstream cryptocurrencies in 2024. WisdomTree stated that with the regulatory environment in the U.S. becoming more favorable under President Trump’s administration, and with an increasing number of countries approving exchange-traded products (ETPs) for altcoins such as SOL and XRP, this momentum is expected to continue this year.
Ethereum’s scalability issues remain to be addressed, while networks like Solana are suitable for stablecoin payments. WisdomTree’s report pointed out that the Ethereum blockchain serves as an “unparalleled backbone for decentralized finance (DeFi), non-fungible tokens (NFTs), and Web3,” but its scalability challenges still pose a hurdle. However, recent upgrades, including Dencun, are expected to drive the adoption of Ethereum Layer 2 networks.
WisdomTree also indicated that stablecoins are “becoming an indispensable part of the global financial system,” and networks like Solana are ideal choices for stablecoin payments and remittances. The report further stated that the tokenization market is expected to expand rapidly in 2025, transforming industries ranging from private equity to venture capital.