Key Points
21Shares, a crypto provider, anticipates a transformative year for crypto in 2025. They project the continued rise of Bitcoin, a rebound in Ethereum‘s revenue, and the expansion of stablecoins.
Projected Growth in Crypto Market
According to their latest research, crypto exchange-traded products are projected to reach $150 billion in assets under management by 2025. The growth is driven by increasing institutional interest. The firm’s “2025 State of Crypto Market Outlook,” published on Dec. 9, identifies key factors driving this growth. These include rising institutional demand, U.S. approvals of crypto ETPs, and favorable macroeconomic conditions.
The outlook also forecasts that more nation-states will adopt Bitcoin as a reserve asset. Countries like Argentina are likely to follow this trend. The report also predicts that Bitcoin’s total value locked will surpass $10 billion in 2025. This indicates its growing utility beyond being merely a store of value.
Adrian Fritz, head of research at 21Shares, noted that European markets have been leaders in digital asset adoption in recent years. However, the U.S. is catching up and becoming an increasingly formidable market for digital assets. This is due to growing investor interest in the asset class.
21Shares also anticipates a resurgence in Ethereum’s revenue growth. The cryptocurrency is expected to regain its revenue levels, likely surpassing 100% of its target growth. This is due to strategic layer 2 integrations.
The firm also predicts increased adoption of stablecoins by both traditional financial sectors and web2 giants. They believe these assets represent one of crypto’s most compelling use cases. They showcase an ideal product-market fit. 21Shares also highlighted its strong performance in 2024, surpassing $10 billion in assets under management. The firm plans to bring on a new suite of executives to drive business expansion in 2025.
