Author: Martin Young, CoinTelegraph; translated by Wu Zhu, Golden Finance
Fidelity Digital Assets stated in its latest research report that countries incorporating Bitcoin into their national strategic reserves by 2025 are expected to significantly boost the cryptocurrency market.
Fidelity Digital Assets research analyst Matt Hogan stated in a paper titled "2025 Outlook" published on January 7 that, "We expect more nation-states, central banks, sovereign wealth funds, and government treasuries to seek to establish a strategic position in Bitcoin."
He added that these institutions may take note of the strategies adopted by Bhutan and El Salvador, "as well as the hefty returns they have garnered from these positions in a relatively short period of time."
He said that due to challenges like inflation, currency devaluation, and rising fiscal deficits, the risk of not allocating Bitcoin may be greater than the risk of allocating it for countries.
If the U.S. continues to advance its Bitcoin strategic reserve plan, "nation-states are likely to begin secretly hoarding Bitcoin," Hogan said. "No country has the incentive to announce these plans, as doing so could affect 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 will "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 2025 to bring more structured passive and actively managed digital asset products to the TradFi world."
Hogan also predicted that tokenization will become the "killer app" of 2025, with on-chain value doubling 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 stated that investors should "prepare for acceleration," as "the adoption, development, interest, and demand for digital assets are all on the rise."
They added, "It's not too late for investors to join the digital asset movement," and believe, "We may be on the brink of a new era for digital assets that will last for years – even decades."
