These Institutional Crypto Trends Will Gain Momentum in 2025 (Nansen)

This year is gradually coming to an end, and although the crypto industry saw significant growth this year, especially after the US presidential election, 2025 is expected to be an even better year.

On-chain analytics platform Nansen has shared with CryptoPotato key insights into important institutional trends that will gain momentum in the crypto market in 2025. However, these narratives are expected to play well with a clearer regulatory framework, which is envisioned under the Trump administration. .

Increase institutional interest in 2025

The crypto industry is likely to experience increased institutional interest in both listed crypto products. As a result, bitcoin (BTC) could be part of the default balanced asset allocation between asset managers and pension funds. Nansen analysts noted that buy-side investors may begin to integrate crypto into standard allocations, shifting from a traditional 60/40 equity-bond split to an equity/bond/crypto split of 55/40/5.

“This stems from the feeling of ‘missing’ BTC’s last 40% rally three weeks after the election. Can investors afford not to allocate to crypto at all going forward?” the questioned report.

Bitcoin could also emerge as collateral for frequent use in traditional lending and decentralized finance (DeFi). Word is that stablecoin issuer Tether is already in talks with financial services firm Cantor Fitzgerald about a $2 billion BTC lending project.

The tokenization trend

Additionally, the launch of new derivative products such as Bitcoin exchange-traded fund (ETF) options indicates growing institutional adoption. Nansen mentioned that these products and their trading platforms will also attract commissions for financial intermediaries, so the sector is likely to grow.

In addition, institutions are exploring the tokenization of financial assets at an increasing rate. US companies are making great strides towards integrating blockchain into financial markets, and this could be the basis for significant growth if authorities provide clear rules for such operations.

Another trend that could drive the growth of the crypto sector is the regulation of stablecoins. If the United States were to move forward with regulatory frameworks for stablecoins, there could be greater institutional adoption of tokenized fiat currencies.

Meanwhile, Nansen says the market is seeing a nice rotation among the outperforming cryptocurrencies amid a relatively shallow consolidation after the election. While December’s historical seasonality suggests a positive environment, there could be more volatility in January as the new US administration takes office.

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