Increased institutional investor adoption and favorable regulatory environments will catalyze growth for the asset class in 2025
ZURICH, 9 December 2024 – 21Shares, one of the world’s largest issuers of exchange traded products (ETPs), today announced the release of its 2025 State of Crypto Market Outlook, a comprehensive analysis of the digital asset market that projects continued momentum for the asset class looking into the new year.
Key predictions from the 21Shares 2025 Outlook – driven by increased institutional interest, historical approvals of crypto ETPs in the United States, and friendly macroeconomic trends – include:
- Another nation-state will adopt Bitcoin as a strategic reserve asset: A clear shift as occurred, as nation-states increasingly embrace the Bitcoin standard. In 2025, 21Shares research indicates that countries like Argentina could adopt Bitcoin as a strategic reserve asset.
- Bitcoin growth will continue to reach all-time highs: Based on data collected, 21Shares anticipates that Bitcoin’s total value locked will grow beyond $10 billion in 2025, establishing Bitcoin’s broader utility beyond a store-of-value1.
- A renaissance in revenue growth for Ethereum: By 2025, 21Shares research shows that Ethereum will regain its revenue levels, likely surpassing 100% of its target growth due to strategic Layer 22 integrations.
- Increased institutional adoption of ETPs will drive unprecedented growth: Supported by landmark changes in the United States to approve Spot Bitcoin ETFs and additional worldwide approvals loosening restrictions on investing in Bitcoin, global crypto ETPs could reach $150 billion in AUM, with at least one US-based Bitcoin ETF likely to rank among the top 25 largest ETFs worldwide.
- Stablecoins will deepen integration across traditional sectors: Stablecoins represent one of crypto’s most compelling use cases, showcasing an ideal product-market. 21Shares anticipates an increase in nation-states, banks, and established Web2 companies adopting stablecoins, either through deeper integrations or by launching their own, signaling adoption across traditional sectors.
“While European markets have pioneered digital asset adoption in recent years, the US is catching up and becoming an increasingly formidable market for digital assets as investor interest in the asset class grows,” said Adrian Fritz, Head of Research at 21Shares. “In 2025, we expect the market to become even more positive towards crypto, spurred by a more favorable regulatory environment under a new administration that will likely accelerate crypto adoption, and growth for the industry at large, at a pace we’ve never seen before.”
Positive predictions for the new year are supported by one of 21Shares’ most successful years to date – the firm recently surpassed $10 billion in assets under management and will bring on a new suite of executives to drive business expansion in 2025.
The $10 billion AUM milestone underscores the surge in institutional interest and development of crypto ETPs as a legitimate global asset. Institutional and wealth advisory holders have nearly doubled over the last two quarters of 2024, setting the stage for continued adoption and growth of digital assets in the new year driven by regulatory clarity, increasingly user-friendly crypto products, and emerging subsectors to cultivate new curiosity in cryptocurrency from a diverse group of investors worldwide.
To access the full report click here. For more information on 21Shares click here.
Media Contact
Audrey Belloff, Head of Global Communications: audrey.belloff@21.co
About 21Shares
21Shares is one of the world’s first and largest issuers of crypto exchange traded products. We were founded to make cryptocurrency more accessible to investors and to bridge the gap between traditional finance and decentralized finance. In 2018, 21Shares listed the world’s first physically-backed crypto ETP, and we have a six-year track-record of creating crypto exchange-traded funds that are listed on some of the biggest, most-liquid securities exchanges globally. In addition to our six-year track record, 21Shares offers investors best-in-class research and unparalleled client service.
21Shares is a member of 21.co, a global leader in decentralized finance. For more information, please visit www.21Shares.com.
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1 Definition: An asset that retains its purchasing power and can be used again in the future; it can be saved, retrieved, and exchanged at a later time.
2 Definition: An off-chain network, system, or technology built on top of a blockchain to help extend its capabilities.
