Bitcoin (BTC) No Longer a Niche Investment as Institutional Adoption Grows: WisdomTree

The institutionalization of crypto markets means bitcoin (BTC) is no longer considered a niche investment, and greater adoption is forcing hesitant investors to reconsider the asset class, WisdomTree said in a report on Monday, which analyzed crypto trends. by 2025.

The investment manager noted that portfolios with allocations to bitcoin are consistently outperforming those without the world’s largest cryptocurrency.

Asset managers need to integrate the digital asset into multi-asset portfolios or “risk being left behind in a rapidly evolving financial landscape,” analyst Dovile Silenskyte wrote, adding that bitcoin adoption is expected to grow this year. as more clients demand exposure to the asset class. .

The launch of spot exchange-traded funds (ETFs) in the US helped make cryptocurrencies mainstream in 2024. This momentum is expected to continue this year as the regulatory environment becomes friendlier in the US. US under President Trump and as more countries approve the exchange. Traded Products (ETPs) for altcoins like SOL and Solana’s XRP, WisdomTree said.

“This next wave of altcoin ETPs will expand the diversity of cryptocurrency investment opportunities and further integrate cryptocurrencies into the global financial system,” Silenskyte wrote.

The Ethereum blockchain’s role as “the backbone of decentralized finance (DeFi), non-fungible tokens (NFT), and Web3 is unmatched,” according to the report, but its scalability issues remain an issue.

Still, recent updates, including Dencun, are expected to drive Layer 2 adoption on the blockchain, the report notes.

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 putting ownership of real-world assets on the blockchain, will expand dramatically in 2025 and transform industries from private equity to venture capital, the report adds.

Read More: Stablecoin Deals and China, Europe to Follow US with Bitcoin Reserve: Wintermute Predictions



Leave a Comment

Your email address will not be published. Required fields are marked *