What to know:
- Wintermute's 2025 predictions suggest that China, the UAE, and Europe may follow the U.S. in creating a Bitcoin strategic reserve.
- OTC trading volumes grew by 313% last year.
- Institutions are looking for more advanced yield and risk management tools.
Crypto's Integration into Traditional Finance
Wintermute predicts that cryptocurrency will become further embedded in traditional finance (TradFi) through products like exchange-traded funds (ETFs) and corporate investments this year. They also anticipate notable corporate transactions settling in stablecoins, as discussed in their annual outlook.
Key Predictions:
- The U.S. will begin discussions about establishing a strategic Bitcoin reserve, with other regions likely to follow.
- A publicly traded company is expected to engage in purchasing Ether (ETH), emulating MicroStrategy's strategy for its Bitcoin acquisitions.
- A significant banking institution might introduce spot cryptocurrency trading services for its clients.
These forecasts are driven by a substantial increase in demand last year, highlighted by significant growth in over-the-counter (OTC) trading volumes, which tripled following the January approval of Bitcoin ETFs, followed by Ether ETFs. This surge in interest has been attributed to clearer regulations and a drive for more efficient trading solutions. The average size of OTC trades saw a 17% increase, and overall volume rose by 313%.
Shift in Asset Trends
Memecoins presented a success story in 2024, with their market share jumping to 16%, largely thanks to drivers in the Solana ecosystem, even as Ether holds a strong position.
"We saw record growth due to a demand for complex instruments like CFDs and options, showing a maturing market increasingly aligned with traditional finance," said Evgeny Gaevoy. "We forecast even more dynamic changes as crypto integrates more deeply into the global financial system through ETFs, corporate assets, tokenization, and the emergence of structured products."
