Bitcoin (BTC) No Longer a Niche Investment as Institutional Adoption Grows: WisdomTree
The institutionalization of crypto markets means that bitcoin (BTC) is no longer considered a viable investment, and increased adoption is forcing hesitant investors to reconsider the asset class, WisdomTree said in a report on Monday, looking at crypto trends for 2025.
The investment manager noted that portfolios with bitcoin allocations continue to outperform those that do not hold the world’s largest cryptocurrency.
Asset managers need to integrate digital assets into multi-asset portfolios or “risk falling behind in a rapidly evolving financial landscape,” wrote analyst Dovile Silenskyte, adding that bitcoin adoption is expected to grow in the year this as more clients demand exposure to the asset class. .
The launch of spot exchange-traded funds (ETFs) in the US helped make crypto more mainstream by 2024. This momentum is expected to continue this year as the regulatory environment becomes friendlier in the US under President Trump, and as more countries approve exchange-traded products (ETPs) for altcoins such as solanaThe SOL and XRPsays WisdomTree.
“The 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 role of the Ethereum blockchain as the “backbone of decentralized finance (DeFi), non-fungible tokens (NFTs) and Web3 is unmatched,” the report says, but its scalability issues are still a problem.
However, recent upgrades are included Dencun is expected to drive layer-2 blockchain adoption, the report said.
Stablecoins has “become indispensable to the global financial system,” and networks like Solana are ideal for stablecoin payments and remittances, WisdomTree said.
Tokenizationthe process of putting ownership of real world assets on the blockchain, will expand dramatically by 2025, and will transform industries from private equity to venture capital, the report added.
Read more: Stablecoin Deals and China, Europe to Track US With Bitcoin Reserves: Wintermute Predictions
