The original text is from DLNews
Compiled by Odaily Golem (@web3_golem)
Wall Street is entering the Altcoin market, with traditional finance entering the digital asset space in unprecedented ways over the past 12 months.
In 2024, industry giants like BlackRock and Franklin Templeton launched Bitcoin spot ETFs; Fintech companies like Robinhood and Stripe also announced plans to acquire Altcoin companies; in addition, the emerging digital bank Revolut and companies backed by banks like Zodia Custody have also expanded their Altcoin product offerings.
16 years after Satoshi Nakamoto introduced Bitcoin as an alternative to the financial crisis in 2008, Altcoins have become part of the financial system. The trend of traditional finance (or TradFi) penetrating the Altcoin space has not slowed down at all.
So what will happen in 2025? DLNews interviewed 7 traditional finance companies including Robinhood, Revolut, Fidelity and Standard Chartered Bank, and asked for their views and expectations on the Altcoin market in 2025, covering topics such as AI, regulation, and asset tokenization. The full interview is compiled by Odaily.
Zodia Custody CEO: 2025 will be a new era of institutional and retail participation in Altcoins
Zodia Custody CEO Julian Sawyer said 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 drafting regulations to help it catch up with more mature Altcoin markets and drive innovation. In particular, the expected new US Securities and Exchange Commission chair is expected to support the implementation of a digital asset regulatory framework and overturn SAB 121 guidance, providing investors with more confidence and clarity.
In Europe, the full implementation of the long-awaited Markets in Crypto-Assets (MiCA) regulation will provide a clear roadmap for investors and industry participants, helping to integrate previously disparate regulatory approaches and solidifying Europe's position in Altcoin regulation.
Beyond 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 Altcoins. With increased trust, 2025 could be a new era of institutional and retail participation, further cementing the importance of digital assets in the global financial system.
Revolut Crypto Product Manager: The launch of MiCA will improve Altcoin regulation in Europe
Revolut Crypto Product Manager Leonid Bashlykov said the Altcoin industry will be in a good growth trajectory in 2025, especially after we have witnessed new historical highs recently.
The change in the US political landscape may pave a positive path for the global development of Altcoins. Regardless of the US SEC's stance, due to the launch of MiCA, 2025 is set to see significant progress in Altcoin regulation, which will provide greater market clarity for the European Economic Area.
Meanwhile, in the UK, the Financial Conduct Authority (FCA) has released an Altcoin roadmap, which provides further clarity for legislation targeting Altcoins.
Robinhood Crypto GM: Closely watching the intersection of Altcoins and AI
Robinhood Crypto GM Johann Kerbrat said, we are very focused on the institutional space, and in 2024 we saw many major acquisitions, such as Stripe acquiring Bridge. We also observe growing interest in stablecoins and the tokenization of real assets.
At the same time, more and more people are learning how to use Altcoin technology to provide better customer experiences. They are building more and more on-chain products and games. Particularly Altcoin-driven products like digital membership cards, which may not prominently feature Altcoin technology, but use Altcoins behind the scenes to reduce costs and increase speed.
Another area we are closely watching is the intersection of Altcoins and AI. There has been a lot of discussion about the fair compensation of creators' materials used for AI training, and Altcoin technology may play an important role in this.
Fidelity Digital Assets Research Analyst: Stablecoin products may continue to surge
Fidelity Digital Assets Research Analyst Martha Reyes said, stablecoins have thrived due to their applications in digital asset trading, as a way to access US dollars, a relatively stable store of value, and a global payment method. In 2024, the EU's stablecoin regulation will take effect in June, which is the first major jurisdiction to implement such regulation, and many are watching whether other regions will follow suit.
Looking ahead, stablecoin products may continue to surge, facilitating integration with traditional banking services and providing other cash-like tools. Stablecoins can coexist or compete with bank-issued tokenized deposits, and facilitate the trading of tokenized traditional securities, improving efficiency while maintaining the US dollar's status as a global reserve currency.
Franklin Templeton Digital Assets Research Analyst: Increased demand for DePIN, AI Agents more prevalent
Franklin Templeton Digital Assets Research Analyst David Alderman said, the Altcoin market in 2025 will see significant progress due to regulatory clarity, institutional adoption, and technological developments. Global financial regulators may take a more Altcoin-friendly approach to tokenization and Altcoins.
We believe this will be led by US regulators (such as the SEC), making a wider variety of Altcoin-related investment products (such as ETFs or tokenized security products) more accessible.
We will also see the convergence of major TradFi players and Altcoin infrastructure, such as Altcoin-native companies entering the securities business, or traditional finance firms launching Altcoin-related products. Meanwhile, the US is expected to establish a stablecoin regulatory framework, which will open the door for major financial institutions to issue their own stablecoins.
Driven by increasing government and institutional support, Bitcoin will solidify its position as a global financial asset. Some countries may incorporate Bitcoin into their strategic reserves, further driving the adoption of Bitcoin as a store of value and global reserve asset.
As the industry prioritizes decentralized and efficient solutions for real-world applications like logistics and IoT, the demand for decentralized physical infrastructure networks (DePIN) may increase. AI agents will become more prevalent in the Altcoin space, automating on-chain transactions, portfolio management, and at least partially integrating social media and other social components with on-chain activities.
Overall, as the underlying technology of cryptocurrencies becomes an integral part of the global financial and operating system, 2025 will mark the transition of the crypto industry from speculation to utility. Stakeholders should focus on regulatory developments, institutional initiatives, and the progress of AI and crypto integration to navigate this dynamic environment.
Global Head of Digital Asset Research at Standard Chartered Bank: BTC and ETH prices will reach $200,000 and $10,000 respectively by the end of 2025
Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered Bank, said thatfrom 2024 to date, institutions have net bought 693,000 Bitcoins through US spot ETFs and MicroStrategy's large purchases.This is equivalent to 3.3% of all potentially existing Bitcoins, driving Bitcoin to break through $100,000, and the inflow of institutional funds is expected to maintain or exceed the pace of 2024 in 2025.
MicroStrategy is ahead of schedule on its three-year $42 billion plan, so its 2025 purchases may be on par with or even exceed 2024.
As for US ETFs, according to SEC 13F filings, pension funds only account for 1% of the holdings reported by the nine new ETFs. We expect this figure to increase in 2025 as the Trump administration's regulatory reforms are implemented, making it easier for traditional finance to participate in the digital asset market.
This will drive the Bitcoin price to our target of around $200,000 by the end of 2025. If US retirement funds, global sovereign wealth funds, or potential US strategic reserve funds adopt Bitcoin more aggressively, our expectations will be more optimistic.
Since the US election, Ethereum has also been a major beneficiary of spot ETF inflows. Prior to this, due to outflows from Grayscale, Ethereum spot ETFs have seen net losses of $500 million since their inception in July.But after the election, net inflows reached $2 billion, and in terms of market share, the inflow volume is roughly on par with Bitcoin's inflow of $9.5 billion.
Sustained inflows in 2025 should help drive Ethereum to our year-end 2025 target of around $10,000.
Altcoins will also rise in 2025, but may benefit in a more volatile manner. Looking at different end-use cases, we expect gaming and asset tokenization to grow further; we see fast-growing potential in nascent sub-categories like DeFi and consumer social.
Head of Investment Research at Sygnum: The crypto market will see demand shocks in 2025
Katalin Tischhauser, Head of Investment Research at Sygnum, said thatwith a large influx of new capital into the Altcoin market in 2025, there may be recurring demand shocks.
We are only seeing the beginning of institutional capital flowing into ETFs and portfolio allocations to the crypto asset class. US regulatory risks may decline rapidly, supporting this trend, and the possibility of central bank Bitcoin reserves is very high, which will accelerate demand growth that will far exceed what this market can bear, leading to significant price increases.
After substantial investment by traditional financial institutions and decentralized platforms in stablecoins and tokenized infrastructure, we expect stablecoins to be widely adopted in payments and tokenized assets to be widely used in transactions and investments by 2025.
While we expect regulatory changes to make it possible to issue more crypto ETFs, we have not seen a huge demand for more single-token ETFs. The anticipation of ETFs can drive the prices of various tokens, but the reality may be disappointing.
The Altcoin season may ultimately replicate past cyclical trends, driven more by speculation and sentiment than fundamentals, with this cycle led by MEME coins. However, if regulatory progress is rapid, allowing token structures to actually absorb economic value, we may see a broad-based revival of Altcoins driven by fundamentals.
