What to know:
- Multi-asset portfolios that hold bitcoin are consistently outperforming those that don’t hold the cryptocurrency, the report said. (Surprise, surprise!)
- WisdomTree said institutional adoption is expected to grow this year as more clients seek exposure to the asset class. (Because who doesn’t want to join the crypto party?)
- Positive ETF momentum will continue in 2025 as more countries approve products for altcoins such as Solana and XRP, the asset manager said. (Hold onto your wallets, folks!)
The institutionalization of crypto markets means that bitcoin (BTC) is no longer considered a niche investment—it’s practically the life of the party! Increased adoption is forcing even the most hesitant investors to reconsider their life choices, according to WisdomTree in a report that was probably written while sipping a piña colada on a beach somewhere.
The investment manager noted that portfolios with allocations to bitcoin are consistently outperforming those that don’t hold the world’s largest cryptocurrency. (It’s like bringing a unicorn to a horse race!)
Asset managers need to integrate the digital asset into multi-asset portfolios or risk falling behind in a rapidly evolving financial landscape. Dovile Silenskyte, the analyst who probably has a crystal ball, added that bitcoin adoption is expected to grow this year as more clients demand exposure to the asset class. (Because FOMO is real, people!)
The launch of spot exchange-traded funds (ETFs) in the U.S. helped take crypto more mainstream in 2024. This momentum is expected to continue this year as the regulatory environment becomes friendlier under President Trump, and as more countries approve exchange-traded products (ETPs) for altcoins like Solana’s SOL and XRP. (Get your popcorn ready!)
“This next wave of altcoin ETPs will expand the diversity of crypto investment opportunities and further integrate cryptocurrencies into the global financial system,” Silenskyte wrote, probably while daydreaming about a world ruled by digital coins.
The Ethereum blockchain’s role as the “backbone of decentralized finance (DeFi), non-fungible tokens (NFTs), and Web3 is unmatched,” the report said, but its scalability issues are still a problem. (It’s like having a fantastic car that runs out of gas every five minutes.)
Still, recent upgrades including Dencun are expected to drive layer-2 adoption on the blockchain, the report noted. (Because who doesn’t love a good upgrade?)
Stablecoins are “becoming indispensable to the global financial system,” and networks such as Solana are ideal for stablecoin payments and remittances, WisdomTree said. (Stability in a world of chaos—what a concept!)
Tokenization, the process of putting the ownership of real-world assets on the blockchain, will expand dramatically in 2025, transforming industries from private equity to venture capital. (Because why not make everything a little more complicated?)
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2025-01-21 12:27