Fidelity says national adoption of bitcoin will spur crypto markets in 2025

In 2025, the first cryptocurrency is expected to be added to the strategic reserves of several countries, a development that would give a significant lift to the digital-asset market, according to a report by Fidelity Digital Assets.

“More and more governments, central banks, sovereign wealth funds and treasuries are seeking to take strategic positions in bitcoin,” the document says.

Analysts think authorities may look to the crypto strategies of El Salvador and Bhutan, as well as to the “substantial profits they have managed to generate over a relatively short period of time”.

Ignoring bitcoin will pose greater risks for countries than adding it to strategic reserves, Fidelity added, citing macroeconomic problems such as inflation, currency depreciation and budget deficits.

“It is likely that national governments will begin to accumulate digital assets covertly. No country has an incentive to announce such plans, as doing so could trigger an influx of buyers and push up the price,” the experts explained.

According to the firm’s forecasts, structured and managed digital assets “will go mainstream” in 2025, as it is “hard to overstate the success” of spot exchange-traded funds based on bitcoin and Ethereum. Another trend will be tokenisation and RWA.

Fidelity advised investors to “prepare for acceleration” amid “growing adoption, development, interest and demand for cryptocurrencies”. It noted that “it is not too late to join the digital-asset movement”.

Earlier, JPMorgan analysts said bitcoin and gold had acquired structural significance in investors’ portfolios. They called the past year a turning point for the industry.