21Shares Forecasts Another Nation to Adopt Bitcoin as Reserve Asset
21Shares, a major issuer of cryptocurrency exchange-traded products (ETPs), forecasts that another nation-state may adopt Bitcoin as a reserve asset, following El Salvador's example.
Their latest 2025 State of Crypto Market Outlook indicates that Bitcoin's increasing recognition as a legitimate financial asset may prompt countries, particularly Argentina, to include it in their sovereign reserves soon.
Bitcoin Can Withstand Economic Crisis
In 2021, El Salvador became the first country to officially add Bitcoin to its reserves. The Central Bank of El Salvador now holds Bitcoin as part of its treasury, marking a shift toward a new standard for reserve assets.
Bitcoin has attracted attention from individual investors and institutions, viewed as both a speculative investment and a store of value with growing global utility. 21Shares posits that Bitcoin could serve as a suitable reserve for central banks globally. Dr. Matthew Ferranti, a former member of the White House Council of Economic Advisers, has previously discussed the economic and strategic advantages of central banks holding Bitcoin alongside traditional assets like gold.
In his October report titled “The Case for Bitcoin as a Reserve Asset,” Ferranti outlined several reasons for central banks to consider BTC.
Bitcoin's Performance during Economic Crises
Ferranti noted Bitcoin's resilience and growth during economic crises, including the repercussions of US financial sanctions and the collapse of major banks in 2023. His analysis shows that Bitcoin's price surged during the 2023 Silicon Valley Bank crisis and increased significantly after US sanctions on Russia post-Ukraine invasion in 2022.
He attributed this performance to Bitcoin's operation outside traditional banking systems, making it less susceptible to geopolitical risks and financial policies affecting fiat currencies. Bitcoin presents an alternative store of value during uncertain times, offering financial stability for nations under external pressures.
Stablecoins to Continue Integration with TradeFi
21Shares predicts that countries like Argentina may follow El Salvador's lead. The company also anticipates Ethereum and stablecoins will play significant roles in the industry's growth next year.
The 2025 State of Crypto Market Outlook states that “Ethereum will regain its revenue levels, likely surpassing 100% of its target growth due to strategic Layer 22 integrations.” It further suggests stablecoins will deepen their integration with traditional finance.