Bitcoin (BTC) is no longer viewed as a niche investment, with institutional adoption enabling its integration into traditional financial portfolios, according to a new report from asset manager WisdomTree.
Bitcoin Becomes More Popular as Institutional Adoption Increases
The published report highlights the important cryptocurrency trends for 2025, emphasizing the evolving role of digital assets in the global financial system. WisdomTree’s analysis reveals that multi-asset portfolios that include Bitcoin consistently outperform portfolios with no exposure to the cryptocurrency. This outperformance, combined with rising client demand, is pushing asset managers to integrate Bitcoin into portfolios or risk being left behind in the increasingly digital financial landscape.
“Bitcoin adoption will accelerate as more investors seek exposure to this transformative asset class,” said WisdomTree analyst Dovile Silenskyte. The launch of US-based spot exchange-traded funds (ETFs) for Bitcoin in 2024 marked a turning point, making cryptocurrency investments more accessible to mainstream investors. WisdomTree predicts this momentum will continue into 2025 as the regulatory environment in the US becomes more favorable under the Trump administration.
Globally, Solana’s approval of exchange-traded products (ETPs) for alternative cryptocurrencies such as SOL and XRP is also expected to expand investment opportunities and further integrate cryptocurrencies into traditional finance. “This next wave of altcoin ETPs will diversify crypto investments and solidify their role in the global financial ecosystem,” Silenskyte added.
The report also highlights the important role Ethereum plays as the foundation for decentralized finance (DeFi), non-fungible tokens (NFTs), and Web3 applications. Despite scalability issues, recent updates like Dencun are expected to encourage the adoption of layer-2 solutions and further increase their functionality.
*This is not investment advice.
