- Sygnum Bank sees institutional adoption & favorable regulations driving crypto market growth, continuing through 2025.
- Bitcoin ETFs fuel institutional interest; BlackRock ETF inflows of $35B show growing confidence in crypto investments.
- Stablecoins, led by Tether, may go mainstream by 2025, boosted by potential integration with Visa, PayPal, & MasterCard.
Sygnum Bank, a Switzerland-based digital asset bank, is hopeful that the current crypto market boom will continue to the year 2025. According to the report from the bank, there are signs that significant price appreciation is expected in the near future as institutions have not bought into the market to its entirety. It is still possible that they will join the market and, therefore, contribute to even higher price increases of digital assets.
The report focuses on the US-based exchange-traded funds (ETFs) launched in the first half of 2024. This is even after Grayscale’s Bitcoin Trust (GBTC) lost $20.8 billion amid the inflows into these ETFs standing at $34.55 billion. The BlackRock’s Bitcoin ETF itself saw inflows of over $35 billion which shows that the institutional investors are slowly coming into the cryptocurrency space and this trend is expected to rise in the future years.
Trump’s Crypto Boost
Most of the current market optimism can be explained by the hopes for the more positive approach to cryptocurrencies under the new U.S. President, Donald Trump. His inauguration is expected to happen in January 2025 and many people are optimistic that his policies will help the growth of the digital asset market. The expected regulatory changes are already boosting the cryptocurrency prices because the market is positively responding to these expectations.
The bank also believes that stablecoins will become a mainstream form of investment in the next three years by 2025. The total market capitalization of stablecoins has recently crossed the $200 billion mark, and Tether is the most dominant with around $140 billion. While stablecoins have mainly been used for trading on crypto exchanges, the bank believes that their application will increase when they will be accepted by payment systems such as Visa, PayPal, and MasterCard.
Bitcoin Powers the 2025 Bull Run
However, according to report, Bitcoin will still reign supreme at the start of the next bull run as the dominant cryptocurrency. The bank’s view is that more investors will get exposure to Bitcoin with the advent of Bitcoin ETFs without actually owning the asset directly. Per the report, this trend may decrease interest in altcoins since investors who are using Bitcoin ETFs will not need to trade in other coins.
Sygnum Bank continues to believe that the cryptocurrency market will develop further. Institutional adoption trends, the positive regulatory environment, and Bitcoin alone will continue to propel the market upwards towards the year 2025.
