"Fidelity Digital Assets", the digital asset investment arm of the asset management company Fidelity, stated in its latest research report that it is expected that in 2025, more countries will include Bitcoin in national strategic reserves, which will drive the cryptocurrency market Significant growth.
Matt Hogan, a research analyst at Fidelity Digital Assets, said in a report titled "Outlook 2025":
“We expect more nation-states, central banks, sovereign wealth funds, and government finance departments to seek to establish strategic positions in Bitcoin.”
Hogan added that the institutions may take note of the modus operandi used in Bhutan and El Salvador "and the significant compensation they receive from such positions in a relatively short period of time." He said: “Faced with challenges such as worsening inflation, currency depreciation and growing fiscal deficits, not allocating Bitcoin may pose a greater risk to the country than allocating it.”
Hogan also believes that if the U.S. advances its Bitcoin strategic reserve plan, there may be countries that begin to secretly accumulate Bitcoin. He stated, "No country has the incentive to announce these plans, as doing so could attract more buyers and drive up prices."
Tokenization will become a killer application
Hogan believes that structured and managed products for digital assets will become "mainstream" by 2025, adding that the success of Bitcoin and Ethereum spot exchange-traded funds (ETFs) is "difficult to overstate." He wrote:
With the initial success of these products, it is reasonable to expect that the traditional financial world will introduce more structured passive and active managed digital asset products by 2025.
Hogan also predicts that tokenization will become a "killer application" in 2025, with its potential in financial services and other areas just beginning to emerge. He noted that the market has already started to introduce novel concepts around tokenization, the most notable being tokenized government bonds, money market funds, global bonds, private credit, commodities, institutional funds, and stocks. Currently, the nominal total of on-chain real-world assets (RWA) is $14 billion, up from $8 billion in 2023. Hogan believes that "it is not unreasonable for this number to double in a year."
Fidelity researchers stated that as "adoption, development, interest, and demand for digital assets increase," investors should be "prepared for accelerated development." They added, "It's not too late for investors to join the digital asset movement now," and believe that "we may be entering the dawn of a new era of digital assets that will last for years, even decades."
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