According to a recent report by Fidelity Digital Assets, countries planning to incorporate Bitcoin into their national strategic holdings from 2025 onwards could potentially trigger a substantial surge in the cryptocurrency market.
According to Matt Hogan, a research analyst at Fidelity Digital Assets, it is expected that more countries, central banks, investment funds controlled by governments, and government treasuries may aim to invest strategically in Bitcoin in the near future, as suggested in their January 7th report titled “2025 Look Ahead.
He mentioned that these institutions could possibly learn from the approach used by Bhutan and El Salvador, “and the significant benefits they’ve managed to achieve from adopting similar strategies within a brief period.
It might be riskier for countries not to invest in Bitcoin (BTC), given the issues like rampant inflation, weakening of currencies, and growing financial burdens due to widening fiscal deficits, according to his statement.
If the U.S. proceeds with its strategy of building a Bitcoin reserve, it’s plausible that other countries might start acquiring Bitcoins covertly, according to Hogan. This is because no country has a reason to publicly disclose such plans, as announcing them could attract more buyers and increase the price.
Hogan further anticipated that digitally structured and controlled financial products will become commonplace in 2025, emphasizing that the achievements of direct Bitcoin and Ether (ETH) exchange-traded funds have been hard to underestimate.
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Hogan foresaw the widespread adoption of digital asset-backed products by 2025, stating that the accomplishments of Bitcoin and Ether (ETH) spot exchange-traded funds were hard to overemphasize.
“With the initial success of these products, it would not be unreasonable to expect 2025 to bring about more structured passive and actively managed digital asset products to the world of TradFi.”
In simpler terms, Hogan foresees tokenization as a breakthrough application in 2025. He expects the value stored on blockchains to increase from $14 billion to around $30 billion by the end of that year.
In the realm of blockchain tech, tokenization is sometimes viewed as a trendy term, yet its capabilities in financial services and other areas are still largely untapped,” he explained.
According to Fidelity’s analysts, investors ought to be ready for a speed-up, as there could be an enhancement in the utilization, creation, curiosity, and desire for digital currencies.
They mentioned that “it’s not too late for investors to jump on board with the digital asset trend” and felt we might be witnessing the beginning of a long-lasting, potentially even decade-spanning, period of growth in digital assets.
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2025-01-08 06:53