As 2024 comes to a close, investment giant Franklin Templeton has released its 2025 predictions for cryptocurrencies and digital assets, with a big focus on more ETF approvals and tokenized futures.
The Bitcoin ETF issuer has predicted that the crypto industry will witness pivotal changes in 2025, driven by regulatory clarity, increasing institutional adoption, and technological advancements.
Franklin Templeton Sees Bitcoin Becoming a Global Asset
The asset manager firmly believes that Bitcoin will continue to gain global adoption throughout 2025. This adoption will be accelerated by strategic BTC reserves in several countries in addition to the US. This prediction is not farfetched, as other major asset managers also share the same opinion.
VanEck recently projected that the US could significantly cut its national debt by as much as 36% by adopting a Bitcoin reserve. Lawmakers from countries like Japan, Russia, and Poland have also shown openness towards a BTC reserve. Though Bitcoin failed to end 2024 above $100,000, the broader market trend for 2025 appears bullish.
However, Galaxy Research said in a report last week that the US government is unlikely to buy Bitcoin outright in 2025. Yet, Trump’s administration might consolidate its existing holdings.
A Regulatory Shift in 2025?
Franklin Templeton argued that favorable regulation would position the US as a crypto global hub in the new year. Over the past few years, the US has lagged in the international market in terms of crypto adoption. This was largely due to the SEC’s consistent scrutiny of the industry.
However, with a potentially pro-crypto government in the White House, several notable developments have already kicked off. For instance, Ripple already launched its RLUSD stablecoin in the country, and several new ETF applications have been filed.
“We believe this will be led by US regulators such as the SEC, enabling more diversified financial or investment products associated with crypto such as ETFs or tokenized security products,” Templeton said.
The SEC, under its new leadership, will play a pivotal role in providing the clarity needed to unlock new financial products in the crypto space. These will include ETFs and tokenized securities, which offer safer, diversified investment options. The investment giant further predicted that 2025 would witness TradFi and crypto players working together closely.
“A stablecoin regulatory framework in the U.S. is anticipated and will open doors for major financial institutions to issue their own stablecoins,” the report added.
Franklin Templeton also noted that the DePin sector will see heightened demand in 2025. Several industries will start prioritizing decentralized solutions for real-world applications. In addition, the firm said that 2025 will mark a shift from “speculation” to “utility” as crypto technology becomes integral to the global economy.
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