Crypto provider 21Shares is forecasting a transformative year for the digital asset market in 2025, projecting significant growth for Bitcoin, a rebound in Ethereum’s revenue, and an expansion of stablecoins, driven by increasing institutional interest.
In its “2025 State of Crypto Market Outlook,” published on December 9, 21Shares predicts that crypto exchange-traded products (ETPs) will reach $150 billion in assets under management by 2025. This growth is attributed to rising institutional demand, the U.S. approval of crypto ETPs, and favorable macroeconomic conditions.
The firm also anticipates that more countries will adopt Bitcoin as a reserve asset, with nations like Argentina potentially following the example set by El Salvador. The report further predicts that Bitcoin’s total value locked (TVL) will exceed $10 billion in 2025, signaling its increasing utility as a functional asset beyond its role as a store of value.
Adrian Fritz, head of research at 21Shares, emphasized that while European markets have been at the forefront of digital asset adoption, the U.S. is rapidly catching up and becoming a key player in the sector. “Investor interest in digital assets is growing, and the U.S. is emerging as an increasingly formidable market,” Fritz said.
Ethereum is also expected to experience a revenue surge, with 21Shares forecasting that the cryptocurrency will surpass its growth targets, thanks to strategic Layer 2 integrations. These developments are expected to reignite Ethereum’s revenue growth trajectory.
Additionally, 21Shares predicts that stablecoins will see broader adoption, particularly among traditional financial sectors and major Web2 companies. The firm highlights stablecoins as one of crypto’s most compelling use cases, noting that they represent an ideal product-market fit.
The outlook also points to strong growth in 2024, with assets under management surpassing $10 billion. Looking ahead to 2025, 21Shares plans to further expand its business by bringing in new executive talent to drive growth and market expansion.
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