Originally published on: December 11, 2024
In a bold prediction, Bitwise, a leading crypto exchange-traded fund (ETF) issuer, foresees 2025 as the year when the crypto market will witness at least five major IPOs, including those of well-known players like Kraken and Circle.
According to Bitwise’s investment chief, Matt Hougan, and research head Ryan Rasmussen, stablecoin issuer Circle, and crypto exchange Kraken are among the top contenders set to go public next year. Additionally, so-called crypto bank Anchorage Digital, analytics firm Chainalysis, and crypto exchange Figure are also expected to follow suit with their own IPOs.
What’s driving this surge in IPO activity? Bitwise attributes it to growing investor demand, institutional adoption, a favorable macro environment, and a more supportive political landscape. These factors have paved the way for what Bitwise has dubbed the “Year of the Crypto IPO.”
But that’s not all that Bitwise is predicting for 2025. They foresee Bitcoin reaching new heights, with potential for it to surpass gold’s market cap by 2029. If the US adopts a strategic Bitcoin reserve as proposed by Senator Cynthia Lummis, Bitcoin could soar even higher, possibly hitting $500,000.
In addition to Bitcoin’s promising outlook, Bitwise expects Ether to make a comeback in 2025, reaching $7,000 fueled by increased activity on Ethereum layer 2s and the growing popularity of stablecoins and tokenized projects.
Moreover, projects on Solana are expected to drive its price to $750, marking a significant increase from its current value.
Coinbase is also set to make waves in 2025, with its shares predicted to double in value and potentially overtaking Charles Schwab as the most valuable brokerage platform. This rise in value is attributed to Coinbase’s diverse revenue streams, including its stablecoin, staking, and custody services.
Institutional investors are increasingly adding Bitcoin to their portfolios, with significant inflows expected in the coming years. This trend mirrors the growth seen in gold ETFs, signaling a shift towards digital assets as a viable investment option.
The tokenization of real-world assets is also on the rise, expected to increase from $13 billion to $50 billion by 2025. This trend aligns with BlackRock CEO Larry Fink’s belief in the tokenization of securities as the future of markets.
As the crypto market evolves, Bitwise anticipates a surge in memecoin mania, driven by advancements in artificial intelligence. Additionally, the stablecoin market is projected to double to $400 billion, with impending legislation in the US likely contributing to this growth.
With these predictions in mind, 2025 is shaping up to be a transformative year for the crypto industry, with IPOs, price surges, and market developments set to redefine the landscape. Stay tuned for more updates as we navigate this exciting journey into the future of finance.