Broader adoption of bitcoin has long been a prominent point in the broader cryptocurrency conversation. And a new era of adoption was ushered in last year when U.S. regulators finally approved spot bitcoin ETFs.
The Coinshares Valkyrie Bitcoin Fund (BRRR) was part of that group. The fund and its friends increased bitcoin access. They paved the way for significant embracement of the largest digital currency by professional market participants, including financial advisors. Some cryptomarket observers believe ETFs such as BRRR are just the beginning regarding broader global adoption of bitcoin. They also think 2025 could build on the momentum that started last year.
A new report by the Fidelity Digital Assets Research Team indicates 2025 could be a tipping point for adoption of digital assets. Should that thesis be validated, ETFs such as BRRR stand to benefit.
“We believe we are beginning to see early signs of mass diffusion and adoption,” according to Fidelity. “Although this process will likely take decades, 2025 has the potential to be the year that is looked back on as the pivotal time where the ‘chasm was crossed’ as digital assets begin to take root and embed themselves into multiple fields and industries. For example, in the past year we have already seen discussions around nation-state adoption and increased corporate balance sheet adoption.”
Mass Adoption Could Soon Arrive
There are myriad catalysts for broader bitcoin and blockchain adoption, including growing global support for decentralized finance. Those factors could augur well for assets such as BRRR.
“There is growing recognition of the value of decentralization, which enhances security and systemic resilience,” added Fidelity. “Blockchain platforms are evolving to accommodate modularization, allowing organizations to customize solutions to their specific needs. Simultaneously, public demand for data privacy and ownership is on the rise, prompting the development of privacy enabling tools.”
The 2025 macroeconomic environment, particularly if inflation proves sticky and if the Federal Reserve cannot lower interest rates as much as hoped, could be another driver of bitcoin adoption. That could be further accelerated by developed nations considering strategic reserves of bitcoin.
“While we may not know what the future holds for the macroeconomic environment for 2025, we do think bitcoin may continue to provide benefits in a portfolio for multiple economic scenarios,” concluded Fidelity. “If a recession does occur, it will likely be responded to with additional monetary and fiscal stimulus, which historically has been good for bitcoin.”
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