Author: Martin Young, CoinTelegraph; Translated by: Wu Zhu, Golden Finance
Fidelity Digital Assets stated in its latest research report that countries expected to incorporate Bitcoin into their national strategic reserves by 2025 will drive significant growth in the cryptocurrency market.
Fidelity Digital Assets research analyst Matt Hogan stated in a paper titled 'Outlook for 2025' published on January 7 by the company: 'We expect more nation-states, central banks, sovereign wealth funds, and government treasuries to seek to establish strategic positions in Bitcoin.'
He added that these institutions might take note of the strategies adopted by Bhutan and El Salvador, 'as well as the substantial returns they have gained from these positions in a relatively short time.'
He stated that the risks of not allocating Bitcoin for a country may be greater than those of allocating Bitcoin due to challenges such as rising inflation, currency devaluation, and increasing fiscal deficits.
If the U.S. continues to advance its Bitcoin strategic reserve plan, 'nation-states are likely to start secretly stockpiling Bitcoin,' Hogan said. 'No country has the incentive to announce these plans, as doing so could attract more buyers and drive up prices.'
The country with the most Bitcoin holdings. Source: FDA
Hogan also predicted that structured and managed digital asset products would 'go mainstream' in 2025, adding that spot Bitcoin and Ethereum exchange-traded funds 'are hard to overstate.'
'Given the initial success of these products, we can reasonably expect that 2025 will bring more structured passive and active managed digital asset products to the TradFi world.'
Hogan also predicted that tokenization would become the 'killer application' of 2025, with on-chain value expected to double from $14 billion to $30 billion by the end of the year.
'Tokenization is often seen as a buzzword in the blockchain technology space, but its potential in financial services and other areas is just beginning to be recognized,' he said.
Fidelity researchers say investors should 'prepare for acceleration' as 'adoption, development, interest, and demand for digital assets are all increasing.'
They added that 'it's not too late for investors to join the digital asset movement' and believe that 'we may be entering the dawn of a new era for digital assets that will last for years—perhaps even decades.'
