Bitwise Executive Shares Top Three Crypto Predictions for 2025
On December 17, 2024, Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, shared his top three predictions for the crypto sector in 2025, highlighting significant growth in the market and following Bitwise's annual top 10 crypto predictions.
#1 Bitcoin Structured Products Surge
Park predicts that Bitcoin structured products will attract at least $5 billion in assets by 2025. He notes that most private wealth managers and institutions are hesitant to take on direct Bitcoin exposure. Products such as buffered notes and principal-protection ETFs will be crucial in addressing this hesitation, providing tailored exposure to Bitcoin’s volatility. Park states, “Buffered notes, principal-protection ETFs, and similar instruments will unlock a floodgate of new demand.”
#2 Maple Finance Outpaces BlackRock’s BUIDL
Park believes Maple Finance, with a total value locked (TVL) of about $535 million, will surpass BlackRock's BUIDL project. He asserts that decentralized markets enabling novel financial primitives will see faster adoption than security tokenization projects adapting to legacy systems. Park identifies decentralized lending platforms like Maple Finance as likely category winners, supported by favorable regulatory changes under the incoming Trump administration.
#3 Emergence Of A New Decentralized Crypto Stablecoin
Despite previous failures like LUNA, Park anticipates the emergence of a new decentralized stablecoin backed by a strategic reserve. He emphasizes Bitcoin's established role as a reserve asset but highlights the need for a decentralized reserve free from sovereign influences. The new stablecoin is expected to enhance transparency and utilize cryptographic proofs to restore trust in decentralized finance. Park states, “I predict a more robust effort will rise, built with heightened transparency and leveraging the long-awaited arrival of cryptographic proofs.”
These insights coincide with Bitwise's projections for 2025, which suggest Bitcoin may exceed $200,000 due to institutional investment and ETF inflows. Ethereum and Solana are also anticipated to reach new all-time highs, contributing to the overall growth narrative in the crypto sector. Furthermore, Bitwise foresees 2025 as potentially the "Year of the Crypto IPO," with several crypto unicorns expected to go public in the US.
At press time, Bitcoin traded at $106,794.
