Author: Martin Young, CoinTelegraph; Translator: Wuzhu, Jinse Finance
In its latest research report, Fidelity Digital Assets stated that countries that will incorporate Bitcoin into their national strategic reserves by 2025 will drive significant growth in the cryptocurrency market.
Fidelity Digital Assets research analyst Matt Hogan said in the company's paper titled "Outlook for 2025" published on January 7: "We expect more nation-states, central banks, sovereign wealth funds, and government treasuries to seek to establish strategic positions in Bitcoin."
He added that these institutions may take note of the strategies adopted by Bhutan and El Salvador, "and the handsome returns they have reaped from those positions in relatively short order."
He said that the risk to nations of not allocating to Bitcoin may be greater than the risk of allocating to it, due to challenges such as inflation, currency devaluation, and growing fiscal deficits.
If the US continues to advance its Bitcoin strategic reserve program, "nation-states are likely to begin quietly accumulating Bitcoin," Hogan said. "No country has an incentive to announce these plans, as doing so could impact more buyers and drive up prices."
Countries with the largest Bitcoin holdings. Source: FDA
Hogan also predicted that digital asset structured and managed products will "become mainstream" by 2025, and added that spot Bitcoin and Ethereum exchange-traded funds "can hardly be overstated."
"Given the early 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 be the "killer app" of 2025, with on-chain value doubling from $14 billion to $30 billion by year-end.
"Tokenization is often seen as a buzzword in the blockchain technology space, but its potential in financial services and other domains is just beginning to be recognized," he said.
Fidelity researchers said investors should "be prepared to accelerate" as "the adoption, development, interest, and demand for digital assets are all increasing."
They added that "it is not too late for investors to join the digital asset movement," and believe "we may be at the dawn of a new era of digital assets that will last for years—even decades."
