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Crypto for Advisors: 2025 Outlook

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In today’s issue, Leo Mindyuk from MLTech provides a crypto outlook for 2025 and highlights key factors that could drive the adoption of these assets.

Then, Miguel Kudry from L1 Advisors shares his insights on the topic in Ask and Expert.

Sarah Morton

You’re reading Crypto for Advisors, CoinDesk’s weekly newsletter that unpacks digital assets for financial advisors. Subscribe here to get it every Thursday.

2025 Outlook for Crypto Adoption: Building Bridges to the Mainstream

The crypto industry is entering 2025 with a renewed sense of purpose. Over the past year, the sector has witnessed key developments that signal crypto’s increasing integration into traditional finance (TradFi) and broader adoption of crypto assets, especially bitcoin. However, the road ahead will test the resilience of this growing ecosystem. As we assess the outlook for 2025, several factors emerge as critical to shaping the adoption trajectory: regulatory clarity, institutional participation, and technological innovation.

1. Regulatory Clarity: Turning Uncertainty Into Institutional Guidelines

As I’ve briefly discussed on my CoinDesk podcast about election night results and the price action around it, regulatory clarity is emerging as a pivotal factor for crypto adoption. The market has already started pricing in the expectation that newly elected officials will bring long-awaited structure to the digital asset ecosystem. We will see some of those expectations starting to play out this year. Key areas where we are likely to see more clarity include:

a) Definition and classification of digital assets: The U.S. is expected to refine how digital assets are classified — whether as securities, commodities, or some combination. This clarity will directly impact how tokens are issued, traded, regulated, and taxed.

b) Stablecoins: These are likely to be a major focus for regulators due to their transformative real-world use cases and potential impact on financial stability.

c) Taxation of crypto transactions: Recent changes have already been made, and we will likely see clearer tax reporting requirements for digital assets, various associated activities, and various industry players.

Additional topics such as tokenization—including real-world assets—custodial and non-custodial wallets, regulated trading venues, decentralized finance (DeFi), anti-money laundering (AML) and know your customer (KYC) compliance, and consumer protections will also be actively discussed and potentially acted upon.

2. Institutional Participation: ETFs as a Catalyst

In 2024, crypto ETFs experienced explosive growth, with billions in net inflows and notable launches. With new products, crypto ETFs now represent a rapidly expanding financial market segment, attracting significant investor interest and outperforming traditional funds. We will likely see a variety of adjacent products.

For 2025, growing inflows and high volumes in BTC and ETH ETFs will likely continue to validate crypto as an asset class and streamline access for retail and institutional investors. This will open the path for other single-asset ETFs, multi-asset ETFs, and various adjacent ETFs (e.g., leveraged, inverse, market-timing, volatility). If regulatory clarity progresses fast enough, we may see the U.S.’s first crypto yield-generating ETFs (e.g., staking). These products could bring additional investor interest to the asset class and increase inflows into passive and active investment products.

3. Technological Innovation: The Convergence of Blockchain Scalability and AI

Technological advancements in 2025 will be driven by Layer-2 blockchain scalability and AI integration. Rollups, zero-knowledge proofs, and interoperability will enhance transaction efficiency and user experience for decentralized applications (dApps) and DeFi. Simultaneously, AI agents operating on decentralized networks will solve and optimize a variety of tasks and interact with users and each other. This synergy simplifies Web3 interactions and ensures secure, transparent execution of AI decisions on blockchain. Together, these innovations will lower barriers to entry, attract developers and users, and accelerate mainstream adoption, making 2025 a pivotal year for blockchain and AI convergence.

Summary

The outlook for crypto adoption in 2025 is overwhelmingly positive, but not without challenges. Regulatory clarity, institutional participation, and technological innovation will be the pillars of growth. The question isn’t whether crypto will gain mainstream acceptance—it’s how fast and in what form. As we approach this next phase, those who adapt to the evolving landscape will lead the charge in shaping the future.

Leo Mindyuk, CEO, ML Tech

Ask an Expert

Q. What were the most impactful developments in the crypto market over the past year, and how have they shaped crypto adoption?

The most significant development in crypto last year was the political shift, with President-elect Donald Trump making crypto a key part of his platform. Markets are only beginning to price in the impact of the Executive and Legislative branches, along with financial regulators, that not only refrained from fighting the crypto industry but also encouraged crypto innovation within the United States. Beyond bitcoin adoption and the potential establishment of a national strategic bitcoin reserve, the broader implications for financial markets are still unclear to many market participants. Some of the world’s largest financial institutions that were previously on the sidelines are now actively developing their crypto strategy in response to the new pro-crypto administration.

Q. How is the evolving regulatory landscape likely to impact crypto markets and institutional involvement in 2025?

The SEC’s regulation-by-enforcement approach has had a far-reaching impact on the crypto markets. A shift to a neutral — or even positive — stance means financial professionals and institutions will need to actively explore how to better serve their customers who are already engaged with crypto, particularly given its decisive role in the election. Additionally, they will need to adapt their offerings to remain competitive in a world where financial markets and assets increasingly operate on crypto rails. Financial advisors, in particular, now have more opportunities to serve their clients by incorporating crypto allocations and existing crypto portfolios into comprehensive financial planning and strategy.

Q. Given the macroeconomic climate, how should financial professionals think about integrating crypto into broader investment strategies in 2025?

The year 2025 will mark a pivotal shift for crypto, transitioning from merely being an asset class to becoming the infrastructure that underpins a growing portion of all asset classes. Put differently, with the adoption of crypto rails, financial professionals will be better equipped to respond to the macroeconomic climate, further accelerating the flywheel of asset tokenization, portfolio allocations, and broader adoption.

Miguel Kudry, CEO, L1 Advisors

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Why Trump’s Tariffs Could Actually Be Good for Bitcoin

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So far, crypto markets haven’t behaved as expected under the Trump Administration. Investors hoped that regulatory reform and policies like a Bitcoin Strategic Reserve would drive prices appreciably higher. But it’s been the opposite. Bitcoin has fallen from highs well above $100,000 at the beginning of the year to a trough in the mid-80,000s for most of March.

Crypto prices have suffered from being increasingly correlated with traditional assets like stocks and bonds, which have been hit by macroeconomic uncertainty. Tariffs — surcharges the U.S. places on imports from other countries — have Wall Street worried about a global recession. Crypto investors have been steering clear of crypto assets, which are seen as relatively risky.

“This is all about markets’ ‘risk appetite’ which continues to deteriorate, and for the time being drives a wedge between crypto assets and gold, which continues to be the ‘safe haven’ of choice,” said Marc Ostwald, Chief Economist & Global Strategist at ADM Investor Services International.

“[That’s] in no small part driven by central bank FX reserve managers, who are seeking to reduce USD exposure, which has long been a source of concern to them.”

As the global financial and trade system becomes more fragmented, investors are seeking alternatives to riskier assets, including dollars. For now, that means turning to gold, which is up 18% year-to-date.

But that could change, said Omid Malekan, an adjunct professor at Columbia Business School and author of «The Story of the Blockchain: A Beginner’s Guide to the Technology That Nobody Understands.» Bitcoin could be the new gold soon enough.

“I think the entire [future] is uncertain and in some ways unknowable, because there are many crosscurrents and both crypto and tariffs are new. Some people argue that crypto is just a risk-on tech asset and would sell off due to tariffs. But bitcoin has found footing in some circles as ‘digital gold’ and the physical variety is soaring on the tariff news. So which will it be?”

In other words, economic uncertainty could lead investors to seek out bitcoin just as they have sought out gold in recent months.

Another note of positivity: the impact of tariffs on crypto could be “priced in” and the worst might be over already, said Zach Pandl, head of research at Grayscale, a leading crypto asset management firm.

President Trump is due to announce U.S. tariffs on Wednesday, April 2, at 4 p.m. ET—what’s known as “Liberation Day.” According to reports, he’ll lay out “reciprocal tariffs” against 15 countries that have levied tariffs against the U.S., including China, Canada and Mexico.

Pandl estimates tariffs have so far taken 2% off economic growth this year. But Liberation Day might actually stop the worst of the pain felt in financial markets. “If we see an announcement [on Wednesday] that is tough but phased, and focused on the 15 countries they seem to be targeting, my expectation is that markets will rally on that news,” Pandl told CoinDesk.

“Potentially once we get through this announcement, crypto markets can focus back on the fundamentals which are very positive.”Pandl said announcements like Circle’s IPO wouldn’t be happening if institutions didn’t have a high degree of confidence in the digital assets sector and the policies around it.

Moreover, Pandl, a former macro-economist at Goldman Sachs, believes that tariffs will increase the appetite for currencies that aren’t dollars.

“I think tariffs will weaken the dominant role of the dollar and create space for competitors including bitcoin. Prices have gone down in the short run. But the first few months of the Trump Administration have raised my conviction in the longer term for bitcoin as a global monetary asset.”

Pendl still believes that bitcoin will hit new all-time highs this year, despite current pessimism around prices. “I wouldn’t have quit my Wall Street job if I didn’t think bitcoin will be the winner in the long term,” he said.

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Stablecoin Giant Circle Files for IPO

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Circle, the U.S.-based stablecoin issuer, is going public.

The firm filed an S-1 form with the Securities and Exchange Commission (SEC) on Tuesday. If approved, the company’s stock will be trading on the New York Stock Exchange under the symbol «CRCL.»

The company said its reserve income from managing its stablecoin-related reserves was $1.7 billion at the end of 2024, representing 99.1% of its total revenue.

Circle is behind USDC, the second largest stablecoin by market capitalization, with $60 billion in supply. The firm’s IPO has been one of the most anticipated in crypto.

It’s not the only crypto-adjacent company looking to go public. Artificial Intelligence (AI) firm CoreWeave (CRWV), which benefits from a strong business relationship with bitcoin mining firm Core Scientific (CORZ), started trading on the public market on March 28.

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GameStop Has $1.5B of Bitcoin Buying Power After Closing Convertible Note Sale

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Bitcoin (BTC) purchases from video game retailer GameStop (GME) could be imminent or may have already begun after the company closed on its offering of $1.3 billion of five-year convertible notes.

The $200 million greenshoe option was fully exercised by the initial purchaser, bringing the total amount of the sale to $1.5 billion. Net proceeds to the company after fees were $1.48 billion, according to a filing Monday after the close of U.S. trading.

Alongside its fourth quarter earnings report last week, GameStop — led by its CEO Ryan Cohen — announced full board approval of an update to the company investment policy to add bitcoin to the GME balance sheet.

GME shares rose 1.35% during the regular session on Monday and are up another 0.8% in after hours action. Bitcoin remains modestly higher over the past 24 hours at $84,900.

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