Original text from DLNews
Compiled by Odaily Planet Daily Golem (@web3_golem)
Wall Street is entering the crypto market, and in the past 12 months, traditional finance has entered the digital asset space in unprecedented ways.
In 2024, industry giants like BlackRock and Franklin Templeton launched Bitcoin spot ETFs; fintech companies such as Robinhood and Stripe also announced plans to acquire cryptocurrency companies; additionally, emerging digital banks like Revolut and companies funded by banks like Zodia Custody expanded their range of crypto products.
Sixteen years have passed since Satoshi Nakamoto introduced Bitcoin in 2008 as an alternative to address the financial crisis, and cryptocurrencies have become part of the financial system. The trend of traditional finance (or TradFi) permeating the crypto space shows no signs of slowing down.
So what will happen in 2025? DLNews interviewed seven traditional financial companies, including Robinhood, Revolut, Fidelity, and Standard Chartered Bank, and asked them about their views and expectations for the crypto market in 2025. Their responses covered AI, regulation, asset tokenization, and more. The full interview is as follows, compiled by Odaily Planet Daily.
Julian Sawyer, CEO of Zodia Custody: 2025 will be a new era of participation in crypto for institutions and retail investors.
Julian Sawyer, CEO of Zodia Custody, stated that 2025 will be a pivotal year: the positive outlook for digital assets, combined with clearer regulatory policies globally, could make 2025 the most critical year for growth.
Many are optimistic that the US will prioritize crafting regulations to help catch up with more mature markets in the crypto space and drive innovation. In particular, the new chair of the US Securities and Exchange Commission is expected to support the implementation of a digital asset regulatory framework and overturn the SAB 121 guidelines, providing more confidence and clarity for investors.
In Europe, the long-awaited full implementation of the Markets in Crypto-Assets Regulation (MiCA) will provide a clear operational roadmap for investors and industry participants, helping to unify previously disparate regulatory approaches, thereby solidifying Europe's position in crypto regulation.
In addition to regulation, as enterprises and institutions seek more efficient ways to digitize and trade tangible assets, the tokenization of real-world assets may be one of the most important innovations to truly unlock the potential of digital assets.
These trends indicate that the industry is maturing and expanding the utility of blockchain and the potential of cryptocurrencies. With increased trust, 2025 could mark a new era of participation for institutions and retail investors, further solidifying the important position of digital assets in the global financial system.
Leonid Bashlykov, head of crypto products at Revolut: The introduction of MiCA will improve European crypto regulation.
Leonid Bashlykov, head of crypto products at Revolut, stated that the cryptocurrency industry will be in good momentum in 2025, especially after we recently witnessed historical highs.
The shift in the US political landscape may pave a positive path for the future of cryptocurrencies globally. Regardless of the SEC's stance, the introduction of MiCA ensures that significant progress in crypto regulation will occur in 2025, providing greater market operational clarity for the European Economic Area.
Meanwhile, in the UK, the Financial Conduct Authority (FCA) has released a crypto roadmap that provides further clarity for legislation targeting crypto.
General manager of Robinhood Crypto: closely watching the intersection of Crypto and AI
Johann Kerbrat, general manager of Robinhood Crypto, stated that we are very focused on the institutional sector, and in 2024 we saw many major acquisitions, such as Stripe acquiring Bridge. We are also observing increasing interest in stablecoins and the tokenization of real-world assets.
Meanwhile, more people are learning how to use cryptographic technology to provide better customer experiences. They are building an increasing number of games and other on-chain products. Particularly, crypto-driven products like digital membership cards may not prominently feature crypto technology, but they use cryptocurrencies in the background to reduce costs and improve speed.
Another area we are closely watching is the intersection of cryptocurrencies and AI. There has been much discussion about fair compensation for creators' materials used in AI training, and the use of cryptographic technology may play an important role.
Fidelity digital asset research analyst: stablecoin products may continue to surge
Martha Reyes, digital asset research analyst at Fidelity, stated that stablecoins are thriving due to their application in digital asset trading, as a means of acquiring dollars, a relative store of value, and a global payment method. In June 2024, the EU's stablecoin regulation will take effect, marking the first significant jurisdiction to implement such regulations, and many are watching to see if other regions will follow suit.
Looking ahead, stablecoin products may continue to surge and facilitate integration with traditional banking, as well as provide other cash-like tools. Stablecoins can coexist or compete with tokenized deposits directly issued by banks, and facilitate the trading of tokenized traditional securities, not only improving efficiency but also maintaining the dollar's status as the global reserve currency.
Research analyst at Franklin Templeton Digital Asset Management: DePIN demand is increasing, AI Agents are becoming more prevalent
David Alderman, research analyst at Franklin Templeton Digital Asset Management, stated that the crypto market in 2025 will see significant progress due to regulatory clarity, institutional adoption, and technological advancements. Global financial regulators may adopt a more favorable stance towards tokenization and cryptocurrencies.
We believe this will be led by US regulators (such as the SEC), making more crypto-related investment products (such as ETFs or tokenized securities products) more diverse.
We will also see the intersection of major TradFi players and crypto infrastructure, such as crypto-native companies entering the securities business, or traditional finance companies launching crypto-related products. At the same time, the US is expected to establish a regulatory framework for stablecoins, opening the door for major financial institutions to issue their own stablecoins.
With increasing government and institutional support, Bitcoin will solidify its status as a global financial asset. Some countries may include Bitcoin in their strategic reserves, further promoting its adoption as a store of value and global reserve asset.
As the industry prioritizes decentralized and efficient solutions for practical applications such as logistics and the Internet of Things, the demand for decentralized physical infrastructure networks (DePIN) may increase. AI agents will become more prevalent in the cryptocurrency space, automating on-chain trading and portfolio management, and at least partially integrating social components like social media with on-chain activities.
Overall, as the foundational technology of cryptocurrencies becomes an integral part of global financial and operational systems, 2025 will mark the shift of the crypto industry from speculation to utility. Stakeholders should focus on regulatory developments, institutional initiatives, and advancements in the integration of AI and crypto to navigate this dynamic environment.
Global head of digital asset research at Standard Chartered Bank: BTC and ETH prices are expected to reach $200,000 and $10,000 respectively by the end of 2025.
Geoff Kendrick, global head of digital asset research at Standard Chartered Bank, stated that institutions have net purchased 693,000 Bitcoins through US spot ETFs and significant purchases by MicroStrategy as of 2024, which is equivalent to 3.3% of all possible existing Bitcoin, pushing Bitcoin above $100,000. The inflow of institutional funds in 2025 is expected to maintain or exceed the pace of 2024.
MicroStrategy is ahead of schedule in its three-year, $42 billion plan, so the purchasing volume in 2025 may be on par with or even exceed that of 2024.
As for US ETFs, according to SEC 13F filings, pension funds accounted for only 1% of the reported holdings in nine new ETFs. We expect this number to increase in 2025 with the implementation of regulatory reforms by the Trump administration, making it easier for traditional finance to participate in the digital asset market.
This will drive Bitcoin prices to our target of around $200,000 by the end of 2025. If US pension funds, global sovereign wealth funds, or potential US strategic reserve funds adopt Bitcoin more aggressively, our expectations will be even more optimistic.
Since the US election, Ethereum has also been the main beneficiary of spot ETF inflows. Prior to this, due to outflows from Grayscale, the Ethereum spot ETF had a net loss of $500 million since its establishment in July. However, after the election, net inflows reached $2 billion, with inflows approximately equal to Bitcoin's at $9.5 billion in market cap share.
The continued inflow in 2025 should help push Ethereum to our expected target of around $10,000 by the end of 2025.
Altcoins are also expected to rise in 2025, but may benefit in a more volatile manner. From different end-use cases, we expect further growth in gaming and asset tokenization; we see emerging subcategories (like DePin and consumer social) with rapid growth potential.
Katalin Tischhauser, head of investment research at Sygnum: A demand shock is expected in the crypto market in 2025.
Katalin Tischhauser, head of investment research at Sygnum, stated that as a large influx of new capital enters the cryptocurrency market in 2025, repeated demand shocks may occur.
We are only seeing the beginning of institutional capital flowing into ETFs and portfolio allocations to crypto asset classes. The regulatory risk in the US could quickly decline, supporting this trend, and the likelihood of central bank Bitcoin reserves could accelerate demand growth, far exceeding what this market can bear, resulting in significant price increases.
After significant investments in stablecoins and tokenized infrastructure by traditional financial institutions and decentralized platforms, we expect stablecoins to be widely adopted in payments and tokenized assets to be widely used in trading and investment in 2025.
Although we expect regulatory changes to make the issuance of more crypto ETFs possible, we do not see significant demand for more single-token ETFs. Expectations for ETFs can drive prices of various tokens, but the reality may be disappointing.
The altcoin season may ultimately replicate past cyclical trends, primarily driven by speculation and sentiment rather than fundamentals, with this cycle led by meme coins. However, if rapid regulatory progress is made that allows token structures to actually absorb economic value, we may see a broad revival of altcoins driven by fundamentals.
