Bitwise Exec Reveals His Top 3 Crypto Predictions For 2025
In an article published on X on December 17, 2024, Jeff Park, Head of Alpha Strategy at Bitwise Asset Management, shared His three personal predictions for the cryptocurrency industry in 2025. His insights come at a time when the cryptocurrency market is experiencing significant growth and after Bitwise released its annual top 10 cryptocurrency predictions for next year.
#1 Bitcoin Structured Products Surge
Park predicts that by 2025, Bitcoin structured products will see an influx of at least US$5 billion in assets. “The cold hard fact is that most private wealth managers and institutions remain hesitant to accept targeted Bitcoin investments,” he said.
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He elaborates on products such as buffer notes and principal protection ETF will play a key role in bridging this gap, providing customized exposure to Bitcoin volatility to meet institutional preferences. “I predict that buffer notes, capital-protected ETFs, and similar instruments will open the floodgates of new demand, allowing institutions to understand Bitcoin’s volatility at a price they deserve and customize to their liking,” Park said.
#2 Maple Finance surpasses BlackRock’s BUIDL
Park believes that Maple Finance’s total value locked (TVL) at around $535 million at the time of writing will exceed BlackRock’s BUIDL project. He believes, “I firmly believe that decentralized markets can enable novel financial primitives that will be adopted faster than ‘security tokenization’ projects that retrofit traditional infrastructure.”
Park believes decentralized lending platforms like Maple Finance that offer institutional-grade services will be category winners in the near future, likely helped by favorable regulatory changes from the incoming Trump administration. “Institutional-grade, crypto-backed decentralized lending like Maple Finance remains the most promising near-term category winner, driven by potential regulatory factors,” Park predicted.
#3 The emergence of new decentralized crypto stablecoins
Despite past failures like LunaPark predicts the rise of new decentralized stablecoins backed by decentralized strategic reserves. He asserted that “Bitcoin’s role as a reserve asset is now undeniable, spanning corporate balance sheets and nation-states,” but stressed that the cryptocurrency community wants reserves to be “decentralized at all costs and immune to the whims of sovereigns.” “.
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He predicts that new stablecoins will take advantage of greater transparency and cryptographic proofs, aiming to restore trust and utility to decentralized finance. “Despite the scars left by LUNA, I expect there will be stronger efforts to increase transparency and capitalize on the long-awaited arrival of cryptographic proofs. I have a few model candidates in mind who can and will lead the way, ” he said.
Parker’s predictions are based on Bitwise predictions for 2025. The company expects Bitcoin prices to exceed $200,000, driven by institutional investment and ETF inflows. Ethereum and Solana are also on track to reach new all-time highs, further consolidating the growth momentum in the cryptocurrency space. In addition, Bitwise believes that 2025 may become the “year of cryptocurrency IPOs”, with multiple cryptocurrency unicorns expected to be listed in the United States.
At press time, Bitcoin was trading at $106,794.
Featured image from YouTube, chart from TradingView.com
