After a turbulent 2024, crypto market participants are turning their attention to 2025 and wondering what the new year could bring for the asset class.
Amid the questions and speculation, leading asset manager Franklin Templeton has suggested three themes for investors to keep an eye on in the new year.
Franklin Templeton’s 2025 Crypto Outlook
$1.68 trillion asset manager Franklin Templeton has outlined his crypto outlook for 2025 divided On Monday, December 30, the company identified three themes for investors to keep an eye on. These topics include regulations, institutional adoption, and AI-crypto convergence.
Regulatory clarity is emerging
Franklin Templeton predicts that 2025 will bring regulatory clarity for cryptocurrencies, with US regulators like the SEC leading the way. These feelings are in light of the new administration of Donald Trump expected pro-crypto policy tendencies and the impending SEC guard rotation.
Trump nominated Paul Atkins, widely known as a crypto advocate, is named SEC chairman.
Under clearer regulatory frameworks, Franklin Templeton expects more diversified cryptocurrency-focused funds to be approved. Other asset managers already seem to be betting on this trend. Strive recently submitted an application to launch a Bitcoin bond ETF. On the other hand, Bitwise submitted to launch a Bitcoin Standard Corporations ETF.
Franklin Templeton expects this regulatory climate to open up new levels of institutional integration with crypto.
Tokenization and stablecoins
Given the SEC’s more explicit guidance, Franklin Templeton expects to see more tokenized security products from traditional financial institutions.
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