Fidelity Digital Assets’ latest research suggests a groundbreaking shift in global financial strategy as nation-states and central banks are expected to incorporate Bitcoin into their national reserves by 2025. According to Matt Hogan, a research analyst at Fidelity, the move could be spurred by nations recognizing the substantial gains achieved by early adopters like Bhutan and El Salvador.
Nation-States Eye Bitcoin for Strategic Reserves
In a report titled “2025 Look Ahead,” published on January 7, Hogan highlighted the growing urgency for governments to hedge against economic challenges such as inflation, currency devaluation, and soaring fiscal deficits.
“Not allocating to Bitcoin could soon become riskier than allocating,” he emphasized, predicting that nations might begin accumulating Bitcoin covertly to avoid driving up its price through public announcements.
Tokenization and ETFs Set to Transform TradFi
Fidelity’s report also envisions 2025 as a breakthrough year for digital asset products in traditional finance (TradFi). The success of spot Bitcoin and Ether ETFs is expected to pave the way for a surge in structured and actively managed digital asset products.
Hogan pointed out that tokenization could emerge as the “killer app” of blockchain technology, with on-chain value projected to double from $14 billion to $30 billion by year’s end. “Tokenization is no longer just a buzzword,” Hogan stated, underscoring its potential to revolutionize financial services and beyond.
The firm’s researchers anticipate a more robust integration of digital assets into mainstream financial systems, bolstered by institutional and retail demand.
Bitcoin Price Momentum
As per the data by CoinMarketCap, Bitcoin is currently trading around $95,800, down by over 5% in the past 24 hours. The cryptocurrency has also seen a downtrend in its market cap, currently standing around $1.89 trillion.
However, despite the ongoing volatility, several crypto experts have shared a bullish outlook for 2025 in the past week.
As the crypto industry gears up for this anticipated acceleration, Fidelity researchers assured investors that it’s not too late to join the digital asset revolution. They described the current phase as the “dawn of a new era,” likely to span years, if not decades.
