As 2024 draws to a close, investment giant Franklin Templeton has released its 2025 predictions for the cryptocurrency and digital asset space. The forecast focuses on increased ETF approvals and tokenized futures.
A Bitcoin ETF issuer predicts that the cryptocurrency industry will undergo significant changes in 2025 due to regulatory clarity, increased institutional adoption, and technological advancements.
Franklin Templeton's Global Outlook for Bitcoin
Franklin Templeton is confident that Bit will continue to be adopted globally throughout 2025. This adoption will be accelerated by the strategic BTC reserves of several countries outside the US. This prediction is not far-fetched, as other major asset managers share the same view.
VanEck recently estimated that the US could significantly reduce its national debt by up to 36% by adopting Bit reserves. Lawmakers in countries like Japan, Russia, and Poland have also shown an open attitude towards BTC reserves. While Bit did not end 2024 above $100,000, the overall market trend for 2025 is positive.
However, Galaxy Research said in a recent report that the US government is unlikely to directly purchase Bit in 2025. But the Trump administration may adjust its existing holdings.
Regulatory Changes in 2025?
Franklin Templeton argues that favorable regulations will position the US as a new global crypto hub in the coming year. Over the past few years, the US has lagged behind the international market in terms of crypto adoption, largely due to the SEC's ongoing industry oversight.
However, with the possibility of a pro-crypto government taking office at the White House, some notable developments have already begun. For example, Ripple has already launched the RLUSD stablecoin in the US, and several new ETF applications have been submitted.
"We believe that US regulatory bodies like the SEC will enable more diverse financial or investment products related to crypto, such as ETFs or tokenized securities," Templeton said.
The new leadership at the SEC will play a crucial role in providing the clarity needed to unlock new financial products in the crypto space, including ETFs and tokenized securities that offer safer and more diverse investment options. Investment firms further predict that 2025 will see traditional finance and crypto players collaborate closely.
"A stablecoin regulatory framework is expected in the US, which will open the door for major financial institutions to issue their own stablecoins," the report added.
Franklin Templeton also mentioned that the DeFi sector will see increased demand in 2025. Several industries will start prioritizing decentralized solutions for real-world applications. The company also said that 2025 will mark the transition of crypto technology from "speculation" to "utility" as it becomes an essential element of the global economy.
