Crypto provider 21Shares anticipates a transformative year for crypto in 2025, projecting Bitcoin’s continued rise, Ethereum’s revenue rebound, and the expansion of stablecoins.

Crypto exchange-traded products are projected to reach $150 billion in assets under management by 2025, driven by increasing institutional interest, according to 21Shares’ latest research. The firm’s “2025 State of Crypto Market Outlook,” published on Dec. 9, identifies key factors driving this growth, including rising institutional demand, U.S. approvals of crypto ETPs, and favorable macroeconomic conditions.

The outlook also predicts that more nation-states will adopt Bitcoin (BTC) as a reserve asset, with countries like Argentina likely to follow suit. Additionally, the report forecasts Bitcoin’s total value locked will surpass $10 billion in 2025, indicating its growing utility beyond being merely a store of value.

Adrian Fritz, head of research at 21Shares, noted that while European markets “have pioneered digital asset adoption in recent years, the U.S. is catching up and becoming an increasingly formidable market for digital assets as investor interest in the asset class grows.”

Ethereum (ETH) is also expected to see a resurgence in revenue growth, with 21Shares forecasting that the cryptocurrency “will regain its revenue levels, likely surpassing 100% of its target growth due to strategic layer 2 integrations.”

The outlook also predicts increased adoption of stablecoins by both traditional financial sectors and web2 giants, saying these assets represent “one of crypto’s most compelling use cases, showcasing an ideal product-market.” 21Shares also pointed out strong performance in 2024, surpassing $10 billion in assets under management, adding that it “will bring on a new suite of executives to drive business expansion in 2025.”