This year is gradually coming to an end, and while the crypto industry witnessed significant growth this year, particularly after the United States presidential election, 2025 is expected to be an even better year.

The on-chain analytics platform Nansen has shared with CryptoPotato key insights into important institutional trends that will gain momentum in the crypto market in 2025. However, these narratives are expected to do well under a clearer regulatory framework, which is anticipated under the Trump administration.

Institutional Interest to Rise in 2025

The crypto industry is likely to experience a surge in institutional interest in both listed crypto products. As a result, bitcoin (BTC) could become part of the default-balanced asset allocation among asset managers and pension funds. Nansen analysts noted that buy-side investors may begin integrating crypto into standard allocations – moving from a traditional 60/40 equity-bond split to a 55/40/5 equity/bond/crypto split.

“This comes from a feeling of “missing out” on the past 40% BTC rally three weeks after the election. Can investors afford not to be allocated at all to crypto going forward?” the report questioned.

Bitcoin could also emerge as a frequently used collateral in traditional lending and decentralized finance (DeFi). Word is spreading that stablecoin issuer Tether is already in talks with the financial services firm Cantor Fitzgerald about a $2 billion BTC lending project.

The Tokenization Trend

Furthermore, the launch of new derivative products like Bitcoin exchange-traded fund (ETF) options indicates increasing institutional adoption. Nansen mentioned that such products and their trading platforms will also attract fees for financial intermediaries, so the sector is likely to surge.

Moreover, institutions are exploring the tokenization of financial assets at an increasing pace. U.S. firms are taking major strides toward integrating blockchain in financial markets, and this could be the basis for significant growth if authorities provide clear rules for such operations.

One more trend that could drive growth in the crypto sector is stablecoin regulation. If the U.S. makes progress on stablecoin regulatory frameworks, then there could be higher institutional adoption of tokenized fiat currencies.

In the meantime, Nansen says the market is seeing a healthy rotation among outperforming cryptocurrencies amid a relatively shallow consolidation after the election. While December’s historical seasonality suggests a positive environment, there could be heightened volatility by January as the new U.S. administration takes office.