The asset manager said altcoins may keep falling in value until the US government passes laws that promote the broad adoption of cryptocurrencies. Signum Bank, an asset management firm with a concentration on cryptocurrency, published a study on December 12th. The report predicts that in 2025, Bitcoin (BTC) will see “demand shocks” from growing institutional investment, which might cause a significant surge in BTC’s price.
Signum’s Crypto Market Outlook 2025 report indicates that institutional capital flows are already significantly impacting the spot price of Bitcoin Set Growth. For every $1 billion in net inflows into spot exchange-traded funds (ETFs), the price pumps by 3-6%.
Bitcoin surge in 2025
According to Sygnum’s prediction, this trend will accelerate when large institutional investors such as endowments, pension funds, and sovereign wealth funds begin to allocate to Bitcoin in 2025. According to Martin Burgherr, chief client officer at Sygnum, “2025 could mark steep acceleration for institutional participation in Crypto assets.”
He mentioned the improvement of US legislation and the possible acknowledgment of Bitcoin Set Growth as a reserve asset for central banks. According to Signum, this tendency will extend to other cryptocurrencies if the US government passes legislation promoting their use.
The study said that for alternative currency to thrive, US lawmakers must create rules “tailored to the asset class” so that projects can provide value to token holders without getting caught up in compliance.
key to Bitcoin’s growth
According to Signum, the Payment Stablecoin Act and the Financial Innovation and Technology for the 21st Century Act (FIT21) are two bills that stand out for Crypto. The study suggests that US law should govern Crypto mining, decentralized financing (DeFi), and self-custody. To compete with Bitcoin Grows, other cryptocurrencies must first overcome its “extremely strong growth drivers.”
As the article continue, “speculative investment towards meme coins, risking a bubble” was caused by “lackluster user growth for the majority of decentralized applications and use cases” (not only Bitcoin). According to Bloomberg Intelligence, US Bitcoin ETFs surpassed $100 billion in net assets on November 21st, marking a new milestone.
Since introducing spot BTC ETFs in January, Bitcoin has dominated the exchange-traded fund industry. Investor excitement surged after US President-elect Donald Trump, known as crypto-friendly, won the election on November 5th.
Spot Bitcoin ETFs Drive Adoption
In November, Bryan Armour, the director of passive strategies research at Morningstar, stated that spot Bitcoin ETFs were create primarily due to “broad Bitcoin Grows adoption and a superior product.”
In his explanation, Armour stated that “the ETFs allowed new investors to buy Bitcoin for the first time,” implying that individuals could acquire Bitcoin without the necessity of establishing a Bitcoin wallet and purchasing it through an exchange. Individuals “also gain from reduced trading costs, minimal fees, and industry-leading Bitcoin storage solutions.”
Summary
The title “Bitcoin Grows with Institutional Support in 2025” suggests that increased involvement and backing from institutional investors in 2025 will significantly influence Bitcoin’s growth and adoption. This likely indicates that large financial institutions, corporations, and other professional entities will play a larger role in legitimizing and driving the cryptocurrency’s growth.
The support could come in various forms, including investment, regulatory advancements, partnerships, and the development of financial products tied to Bitcoin. This institutional backing could help Bitcoin gain broader acceptance, stability, and potential mainstream use in 2025.
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