Nation-state Bitcoin adoption to drive crypto growth in 2025: Fidelity

Fidelity Digital Assets research analyst Matt Hogan said not making any Bitcoin allocation could become more of a risk to nations than making one.

El Salvador, Bitcoin ETF, RWA Tokenization

Top nation states holding Bitcoin. Source: FDA

Hogan also predicted that digital asset-structured and managed products would “go mainstream” in 2025, adding it was “difficult to overstate the success” of spot Bitcoin and Ether

ETH

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$3,369.68

exchange-traded funds.

“With the initial success of these products, it would not be unreasonable to expect 2025 to bring about more structured passive and actively managed digital asset products to the world of TradFi.”

Hogan also predicted that tokenization will be the “killer app” of 2025, with onchain value doubling from $14 billion to $30 billion by the end of the year.

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“Tokenization is often seen as a buzzword in the world of blockchain technology, but its potential in financial services and beyond is only beginning to be realized,” he said.

The Fidelity researchers said investors should “prepare for acceleration” with “increased adoption, development, interest in, and demand for digital assets.”

They added that “investors are not too late to join the digital asset movement” and believed “we may be entering the dawn of a new era for digital assets, one poised to span multiple years — if not decades.”