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In a post on X dated December 17, 2024, Jeff Park, Head of Alpha Strategy at Bitwise Asset Management, shared his personal top three predictions for the crypto sector in 2025. His insights come at a time when the crypto market is experiencing significant growth. , and after Bitwise releases its annual top 10 cryptocurrency predictions for next year.
#1 Rapid increase in Bitcoin structured products
Park predicts at least $5 billion in assets will flow into Bitcoin structured products by 2025. “The cold, hard truth is that most private asset managers and institutions remain hesitant to accept directional exposure to Bitcoin,” he said.
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He elaborates that products such as buffer notes and principal protection ETFs are critical to bridging this gap, providing tailored exposure to Bitcoin volatility in line with institutional preferences. “Buffer notes, principal-protected ETFs, and similar products will open the floodgates of new demand, allowing financial institutions to access Bitcoin volatility at a price point that is customized to their preferences. I predict he will be deaf,” Park said.
#2 Maple Finance outperforms BlackRock’s BUIDL
With total value locked (TVL) of approximately $535 million at the time of his writing, Park believes Maple Finance will surpass BlackRock's BUIDL project. “My unreserved view is that decentralized markets that enable new financial primitives will be deployed faster than 'security tokenization' projects that retrofit traditional infrastructure,” he said. claims.
Park believes that decentralized lending platforms like Maple Finance, which offer institutional-grade services, will be winners in this space in the near future, in part due to favorable regulatory changes under the incoming Trump administration. are. “Institutional-grade crypto-backed decentralized lending like Maple Finance remains the most promising short-term sector winner, supported by potential regulatory tailwinds,” Park predicts.
#3 Emergence of new decentralized crypto stablecoins
Despite past failures like LUNA, Park foresees the rise of new decentralized stablecoins backed by decentralized strategic reserves. He argues that “Bitcoin's role as a reserve asset is now undeniable, extending from corporate balance sheets to nation-states,” but that the crypto community is “decentralized at all costs from the whims of sovereigns.” It emphasizes that it wants to have “standardised” reserves.
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He predicts that new stablecoins will leverage increased transparency and cryptographic proofs to restore trust and utility in decentralized finance. “Despite the scars left by LUNA, I foresee stronger efforts emerging that increase transparency and capitalize on the long-awaited arrival of cryptographic proofs. “We have several candidates in mind,” he said.
Park's predictions follow Bitwise's predictions for 2025. The company predicts that institutional investor and ETF inflows will push Bitcoin above $200,000. Ethereum and Solana are also expected to hit new all-time highs, further cementing the growth story in the crypto space. Furthermore, Bitwise believes that 2025 could be the “year of crypto IPOs” with several crypto unicorns expected to go public in the US.
At the time of writing, Bitcoin was trading at $106,794.
Bitcoin price, 1 week chart | Source: BTCUSDT on TradingView.com
Featured image from YouTube, chart from TradingView.com
