Asset management company WisdomTree reports: Bitcoin is no longer considered a niche investment as institutional adoption surges

According to a report by CoinDesk, the US asset management firm WisdomTree discussed the crypto trends for 2025 in a report on Monday. The analysts stated that the institutionalization of the crypto market means that BTC is no longer seen as a niche investment, and as adoption increases, hesitant investors are being forced to reconsider this asset class.

Crypto adoption to continue growing

WisdomTree pointed out that portfolios allocated to BTC have continued to outperform those that did not include the Altcoin. Analyst Dovile Silenskyte wrote that asset managers need to incorporate digital assets into multi-asset portfolios, or else they risk "falling behind in the rapidly evolving financial landscape".

She added that with more and more clients seeking exposure to the asset class, BTC's adoption is expected to grow this year.

The launch of Crypto ETFs in the US has helped make Crypto more mainstream in 2024. WisdomTree said that with a more crypto-friendly regulatory environment under former US President Trump, and more countries approving Altcoin ETPs (such as SOL and XRP ETFs), this momentum is expected to continue this year.

Silenskyte wrote: "The launch of the next wave of Altcoin ETPs will expand the diversity of crypto investment opportunities and further integrate Crypto into the global financial system."

Ethereum scalability issues to be resolved, Solana and others suitable for stablecoin payments

WisdomTree's report stated that the Ethereum blockchain is "unparalleled as the backbone of DeFi, Non-Fungible Tokens (NFTs), and Web3", but its scalability issues remain a challenge. However, recent upgrades including Dencun are expected to drive the adoption of Ethereum's Layer 2 networks.

WisdomTree also said that Stablecoins are "becoming an indispensable part of the global financial system", and networks like Solana are ideal choices for Stablecoin payments and remittances.

The report added that the Tokenization market will expand rapidly in 2025 and will transform industries from private equity to venture capital.