Fidelity Expects More Nation-States, Central Banks To Buy Bitcoin In 2025
Fidelity in the latest Report It is said that countries are expected to include Bitcoin in national strategic reserves in 2025, thus starting significant growth in the crypto market. In its 2024 outlook, the Fidelity Digital Asset Research team noted that investors should “prepare for an acceleration” in “increased adoption, development, interest and demand for digital assets.”
“We expect more nation states, central banks, sovereign wealth funds and government treasuries to seek to establish strategic positions in Bitcoin,” said Matt Hogan, a research analyst at Fidelity Digital Assets.
The report notes that these institutions are likely to follow the strategies employed by Bhutan and El Salvador, noting that they have reaped significant returns in the short term. It also noted that as inflation rises, currencies depreciate and fiscal deficits surge, not allocating Bitcoin may be riskier than allocating Bitcoin.
Bitcoin strategic reserve
It also said that although President-elect Donald Trump and Senator Cynthia Loomis have both been outspoken about establishing a strategic Bitcoin reserve in the United States, it remains to be seen whether they will implement this plan in 2025.
It is worth noting that in July, Senator Lummis introduced the “Bitcoin Act of 2024” to the Senate. Fidelity said if the bill passes, it could put political and financial pressure on other countries to take similar measures.
Are nation states secretly hoarding Bitcoin?
If nation-states were to start accumulating Bitcoin, they would likely do so quietly, as publicly announcing their plans could prompt other investors to buy Bitcoin, pushing up the price, the report said.
The report states that the United States, China, the United Kingdom, Ukraine, Bhutan and El Salvador are currently the largest government holders of Bitcoin. It notes that many of these counties have been affected solely by government seizures and recoveries of Bitcoin related to criminal activity.
Tokenization: The Killer App of 2025
Hogan also predicts that tokenization will become the “killer app” in 2025, with on-chain value doubling from $14 billion to $30 billion by the end of the year. “Tokenization is often seen as a buzzword in blockchain technology, but its potential in financial services and beyond is only beginning to be realized,” he said.
It’s not too late for investors
The report concludes by stating that it is not too late for investors to join the digital asset movement, but in fact, digital assets may be entering the dawn of a new era that will last for many years. This era is likely to see digital assets permeate every sector—industry, technology, sector, balance sheet, and even nation-state.
