Pantera's 2025 Prediction: How Will the On-chainization of the Dollar Reshape the Global Financial Landscape?

Original Article Title: The Year Ahead In Crypto
Original Article Author: Pantera Capital
Original Article Translation: zhouzhou, BlockBeats

Editor's Note: This article revolves around blockchain technology, particularly stablecoins and asset tokenization, which are enhancing the global dominance of the US dollar. The US is advancing stablecoin legislation, with progress expected by 2025. The tokenization of real-world assets is driving the development of DeFi, integrating traditional assets into blockchain and further strengthening the dollar's importance in the global financial system.

The following is the original content (slightly reorganized for better readability):

The Next 100x Opportunity for Blockchain

Author: Franklin Bi, General Partner

What Does the Path to Crypto Mainstream Adoption Look Like?

Setting aside the hype and speculation, this is the only truly important question. As investors, our duty is to chart the course to mass adoption because only along this path can we find the next 100x investment opportunity.

However, the best venture capitalists do not predict the future but see the present clearly. 2025 will undoubtedly be a turning point for the cryptocurrency industry.

Imagine if Jeff Bezos had been arrested for selling books online; if Steve Jobs had been sanctioned for launching the App Store; or if Huang Renxun had to build NVIDIA outside the US due to a "blocking action" that resulted in his bank accounts being closed. This is the "gray area" our industry is emerging from.

In 2025, for the first time in blockchain history, entrepreneurs, regulators, and policymakers will finally have the opportunity to pave the way for mass adoption. Faced with this newly clear path, we return to our initial question: what lies on the road to mainstream adoption? Where will the next 100x or even 1000x investment opportunity emerge?

Just as "Social/Local/Mobile" (SoLoMo) unleashed the potential of the internet in the 2010s, the convergence of three major trends starting in 2025 will usher in crypto mainstream adoption:

Gateway – Bringing the traditional financial system onto the blockchain;

Developers – Making it easier to build the internet-native economic layer;

App——Create meaningful applications for daily life.

Gateway

Over the past 50 years, Wall Street has undergone a software upgrade, from electronic trading in the 1970s to today's digital payments. The steady penetration of software into the financial sector has taught us one thing: all financial assets will eventually migrate to a place with greater liquidity, higher transaction efficiency, and optimized value.

Today, blockchain networks have already supported $3 trillion in crypto assets (such as Bitcoin, Ethereum, etc.) and a small portion of asset-backed tokens (such as USD and Treasury bond tokens). However, the total financial assets held by global households, governments, and businesses exceed $1000 trillion ($1 quadrillion!), indicating that blockchain still has 300 times growth potential.

Where are we now? The game has not even started; the players are still on the bus. The global balance sheet has just begun to migrate to the blockchain. To succeed, we need an on-ramp from the traditional financial system to the blockchain.

We must expand platforms that can efficiently onboard new users and existing assets. For example, Bitso in the Latin America region serves as a regional gateway and has already processed over 10% of US-Mexico remittances on the blockchain. Tokenization platforms like Ondo are challenging giants like Franklin Templeton and BlackRock, aiming to bring $20 trillion in US Treasury bonds onto the chain.

Cryptocurrency is fostering a truly global capital market, driven by real-time settlement and borderless liquidity. However, a global market requires global exchanges. Exchanges like Figure and Avantis are bringing global supply and demand together, transforming the forex, credit, and securities markets.

Finally, we need products that are compatible with existing systems, not just a parallel crypto universe. These products may be advanced wallets designed for institutions like Fordefi or simple payment solutions for regular users like TipLink.

We believe that one day, your net worth will be more valuable on-chain than off-chain. Once migrated to the chain, your wealth can flow globally instantaneously, transact at low cost, eliminate intermediary fees, and achieve maximum value through global demand. This will be an irreversible turning point.

Developers

Currently, there are about 100,000 developers building on blockchain, only equivalent to half of a tech giant in Silicon Valley. To achieve mainstream adoption, we need to multiply this number by 100, bringing in 10 million developers to the blockchain ecosystem.

Unlocking the creative potential of blockchain technology is crucial. Just as better tools helped mobile developers unlock the potential of the Apple App Store, we need tools that can streamline on-chain application development and new product creation.

By 2025, the blockchain development toolset will experience a significant leap forward. The key is to make the blockchain itself more developer-friendly. Technologies like Arbitrum's Optimistic Rollup have brought the crypto space its first "broadband moment," but upgrades like Arbitrum Stylus could have an even greater impact. Stylus allows developers to write smart contracts in multiple major programming languages like C, C++, and Rust, opening up the world of blockchain development to over 10 million developers globally.

Zero-knowledge technology was once seen as a complex technology that was difficult to practically develop. However, new tools like the StarkWare Development Suite have made zero-knowledge implementation unprecedentedly simple. Today, zero-knowledge proof technology is supporting products like the Freedom Tool. The Freedom Tool is a blockchain voting tool developed by Rarimo, which has been deployed in Russia, Georgia, and Iran to enhance democratic participation.

Tools and infrastructure that support blockchain development will play a crucial role in driving industry advancement. Platforms like Alchemy are assisting developers in building and deploying on-chain applications at scale. By simplifying the development process, Alchemy has helped many projects succeed, ranging from decentralized finance (DeFi) protocols to gaming applications. As the blockchain ecosystem continues to evolve, these developer platforms must keep pace with rapid development to enable developers to break through the limits of on-chain development.

By 2025, the multi-chain universe will continue to expand, and possibly accelerate. With developers facing more complex challenges, new blockchains will also emerge, each excelling in computation, execution, decentralization, and other areas. To meet specific use cases such as gaming or transactions, application-specific infrastructures like B3 are taking shape.

This explosive growth of chains, Layer 2 solutions, and application chains requires seamless connectivity. Cross-chain liquidity solutions like Everclear and interoperability protocols like Omni will unleash developer productivity, allowing them to focus on building innovative applications.

Web development has evolved from raw coding to intuitive no-code solutions, and now AI is beginning to dominate this field. We expect similar evolution in blockchain development. Each technological advancement and developer-focused tool improvement will attract a new wave of talent, potentially making building on-chain applications as simple as conversing with ChatGPT.

Application

How many people are currently using blockchain?

According to most estimates, there are approximately 80 million on-chain users. The majority of this growth has come from the appeal of cryptocurrency as "Wall Street 2.0" — a new realm for capital raising, speculation, and transfers. However, to achieve a 100x growth and reach 8 billion people, the key lies in transitioning from "Wall Street" to "Main Street."

2025 may be the inflection point for cryptocurrency mainstream adoption, akin to blockchain's "FarmVille moment." FarmVille was Facebook's first social game blockbuster, driving exponential user growth on the platform, transforming it from a photo-sharing app to a global powerhouse.

The crypto industry is rapidly approaching its own "FarmVille moment." On-chain functionality is being integrated into new games and social applications. Game studios like InfiniGods have attracted a large number of new users through their casual mobile game "King of Destiny." Over the past year, the game has seen over 2 million app downloads, bringing in users more likely to play "Candy Crush" than use Coinbase.

On-chain gaming, social, and collectible activities now make up approximately 50% of today's active wallets. As more users engage in on-chain commercial activities, blockchain's disruption of society will extend far beyond the financial sector.

A class of "production" applications is driving a new industrial revolution, as the era of companies gives way to the rise of "industrial networks." These applications, also known as DePINs, focus on underserved markets such as wireless connectivity, hyperlocal data, and human capital. Through on-chain coordination and market-driven mechanisms, projects like Hivemapper are rapidly expanding. As a decentralized mapping network, Hivemapper, with the efforts of over 150,000 contributors, has mapped over 30% of global roads, providing data more precise and real-time than Google Maps.

These "production" applications are not only generating revenue but also ushering in a new chapter of the blockchain economy. By 2025, it is projected that the annual revenue in the DePIN space will surpass $500 million in 2024. This industrial-level cash flow is not only based on practical utility but also provides a potent commercial engine for the on-chain economy, guiding new capital inflows.

How to reach 8 billion users? 2025 will witness new distribution models that can reach hundreds of millions of consumers at scale. Cryptocurrency exchanges like Coinbase, Kraken, and Binance are onboarding users onto the blockchain through their proprietary networks. Telegram and Sony are integrating Web3 functionalities into their vast user platforms. Gaming companies are adding on-chain capabilities to classic games like "MapleStory," potentially luring back millions of players. Institutions like PayPal and BlackRock are also rolling out on-chain financial and payment solutions.

Through these innovative applications and distribution models, encryption technology is gradually moving towards the mainstream, reshaping our perception of the economy and technology.

By 2025, the convergence of these trends will bring a key inflection point. When the average person has a reason to spend 60 minutes per week on-chain, "on-chain" will become the new "online."

Without relying on "killer apps," just as we switch between apps on the internet, people will spend time on-chain for various reasons such as entertainment, socializing, or earning money. By then, the on-chain economy will gradually integrate into our daily lives.

Future Outlook

The upcoming year will mark the beginning of an era where blockchain technology starts to integrate into our daily lives, much like the internet. The shift from Wall Street to Main Street is not only happening but accelerating, primarily driven by entertainment, commerce, and real-world applications.

To achieve this goal, we need to invest in more convenient gateways, improved technology and developer tools, and applications that solve real-world problems. The road to 2025 is still filled with 100x opportunities as the mainstreaming of cryptocurrency becomes a reality. As a sage once said, "The best way to predict the future is to create it."

2025 Cryptocurrency Predictions

Author: Paul Veradittakit, Partner

This year, I have enlisted the help of Pantera's team of investors. My predictions are divided into two categories: upward trends and new ideas.

Upward Trends

Real-world assets (excluding stablecoins) will account for 30% of on-chain TVL (currently at 15%)

By 2024, on-chain RWAs have increased by over 60%, reaching $13.7 billion. Around 70% of RWAs are private credit, with the rest mostly in US Treasuries and commodities. The inflow of funds into these categories is accelerating, and more complex RWAs may be introduced by 2025.

First, private credit is growing rapidly due to infrastructure improvements. Figure has almost dominated this part, adding nearly $4 billion in assets in 2024. With more and more companies entering this space, using private credit will become easier, thereby moving funds into cryptocurrency.

Second, there are trillions of dollars in U.S. Treasuries and off-chain commodities. On-chain, there are only $27 billion worth of U.S. Treasuries, but they can earn yield (unlike stablecoins, which allow the issuer to earn interest), making them a more attractive alternative to stablecoins. Blackrock's BUIDL U.S. Treasury Fund has only $500 million on-chain, while it holds hundreds of billions of dollars' worth of U.S. Treasuries off-chain. Now, DeFi infrastructure has fully embraced stablecoins and U.S. Treasury-backed Real World Assets (RWAs) (integrating them into DeFi pools, lending markets, and perpetual contracts), greatly reducing the difficulty of using these assets, and commodities as well.

Finally, the current scope of RWAs is limited to these basic products. The infrastructure for minting and maintaining RWA protocols has been greatly simplified, operators have a better understanding of the risks of on-chain operations and appropriate mitigations. There are now dedicated companies managing wallets, minting mechanisms, Sybil resistance, crypto-native banks, etc., which means it may finally be possible to bring stocks, ETFs, bonds, and other more complex financial products on-chain. By 2025, these trends will accelerate the use of RWAs.

Bitcoin Finance

Last year, my prediction for Bitcoin Finance was strong but did not reach 1-2% of all Bitcoin TVL. This year, driven by Bitcoin native finance protocols (like Babylon) that do not require bridging, high returns, a high Bitcoin price, and demand for more BTC assets (such as Runes, Ordinals, BRC20), it is expected that 1% of Bitcoin will participate in Bitcoin finance.

FinTech Becomes the Gateway to Cryptocurrency

TON, Venmo, PayPal, and WhatsApp have seen growth in cryptocurrency as a result of their neutrality. They serve as gateways through which users can interact with cryptocurrency but do not promote specific apps or protocols; in fact, they can serve as simplified entry points into cryptocurrency. They attract different user bases: TON serves the existing 9.5 billion Telegram users, Venmo and PayPal serve their 5 billion payment users each, and WhatsApp attracts its 2.95 billion monthly active users.

Felix is an app that runs on WhatsApp, allowing users to make instant transfers via messaging, which can be digital transfers or cash-out at partner locations (like 7-Eleven). It is backed by stablecoins and Stellar-based Bitso. Users can now purchase cryptocurrency via Venmo using MetaMask, Stripe acquired Bridge (a stablecoin company), and Robinhood acquired Bitstamp (a cryptocurrency exchange).

Whether intentional or due to their ability to support third-party applications, every fintech company will become an entry point for cryptocurrency. Fintech companies will become more prevalent, potentially competing with some smaller centralized exchanges for cryptocurrency holdings.

Unichain Emerging as the Leading L2 by Transaction Volume

Uniswap's TVL is close to $6.5 billion, with 50,000 to 80,000 daily transactions and a daily trading volume of $1 billion to $4 billion. Arbitrum has a daily trading volume of around $1.4 billion (with one-third coming from Uniswap), and Base has a daily trading volume of approximately $1.5 billion (with one-quarter from Uniswap).

If Unichain can capture half of Uniswap's trading volume, it will easily surpass the largest L2 and become the leading L2 by transaction volume.

The Renaissance of NFTs, but in an Application-Specific Way

NFTs were initially seen as a tool within cryptocurrency rather than an end in themselves. Now, NFTs are being used as tools in on-chain games, AI (for ownership of trading models), identity, and consumer applications.

Blackbird is a restaurant rewards app that integrates NFTs into customer authentication, connecting the open, liquid, and identifiable blockchain with the restaurant to provide consumer behavior data and seamlessly create/mint subscriptions, memberships, and discounts for customers.

Sofamon has created a Web3 version of Bitmoji (i.e., an NFT) called wearables, unlocking the financial layer of the emoji market. They recognize the increasing importance of on-chain intellectual property and are partnering with top KOLs and K-pop stars to combat digital counterfeiting. Story Protocol recently raised $80 million at a valuation of $2.25 billion, aiming to tokenize world intellectual property, making originality the core of creative exploration and creators. Swiss luxury brand IWC has launched a member NFT that grants access to an exclusive community and events upon purchase.

NFTs can be used for ID transactions, transfers, ownership, and memberships, but they can also represent and value assets, bringing monetization and even speculative growth. This flexibility gives NFTs enormous potential, and their applications will continue to expand.

The Launch of Restaking

By 2025, restaking protocols such as EigenLayer, Symbiotic, and Karak will finally launch their mainnets, paying validators rewards from AVS and penalty rewards. This year, the focus on restaking has somewhat diminished.

The restaking protocol gains strength through increased usage across more networks. If the protocol's infrastructure is supported by a specific restaking protocol, even if that support is indirect, it can derive value from it. It is through this power that a protocol can become somewhat detached but still maintain significant valuation. We believe that restaking is still a multi-billion dollar market, and as more applications become chain-agnostic, they will leverage restaking protocols or other protocols based on restaking.

zkTLS Bringing Off-Chain Data On-Chain

zkTLS uses zero-knowledge proofs to verify the validity of data from the Web2 world. This new technology has not been fully realized yet, but once implemented (hopefully within this year), it will bring forth a new type of data.

For example, zkTLS can be used to prove that data originates from a specific website. Currently, there is no way to achieve this. This technology leverages the advancements of TEE and MPC, which may further evolve in the future to allow for selective data privacy.

This is a novel idea, but we predict that companies will start building this technology and integrate it into on-chain services, such as verifiable oracles, for non-financial data or encrypted secure oracle data.

Regulatory Support

For the first time, the regulatory environment in the United States seems to be taking a positive stance on cryptocurrency. 278 House candidates who support cryptocurrency were elected, while only 122 candidates opposing cryptocurrency won. The Chairman of the U.S. Securities and Exchange Commission (SEC) Gary Gensler, who is against cryptocurrency, announced his resignation in January. It is reported that Trump plans to nominate Paul Atkins to lead the SEC. Atkins was previously an SEC commissioner and publicly supports the cryptocurrency industry, serving as an advisor to the Digital Chamber of Commerce. Trump also nominated David Sacks as the "AI and Crypto Czar." In the announcement, Trump stated, "David Sacks will work on drafting a legal framework to provide the clarity that the cryptocurrency industry has long sought."

We hope to see a reduction in SEC lawsuits, a clear definition of cryptocurrency as a specific asset class, and tax considerations.

Cryptocurrency: The Ironic Answer to De-dollarization

Author: Jeff Lewis, Product Manager, Hedge Funds, and Erik Lowe, Content Lead

The trend towards de-dollarization is on the rise, referring to the gradual move by countries and institutions away from the dominant role of the US dollar in global trade and financial transactions, sparking concerns about the long-term dominance of the dollar. The most common measure of the dollar's dominance is its share in foreign exchange reserves, which has declined by 13 percentage points since 2000.

We believe that a reversal of this trend is imminent. Ironically, the driving force behind this shift, which most US policymakers and central bankers considered would accelerate the dollar's decline five years ago, is blockchain technology and tokenization. The technology once seen as a potential disruptor to the dollar's status is now positioning itself as its greatest enabler.

“The most ironic outcome is the most likely.” — Elon Musk

The Dollar's Supercharge

Public blockchains have given fiat currency a supercharge, sending it to the fingertips of over five billion smartphone users globally and making its cross-border flow seamless. The demand for tokenized fiat currency (i.e., stablecoins) has created a $200 billion industry, with the dollar dominating the market. A report by Castle Island and Brevan Howard includes a chart showing the dollar's close to 100% dominance in stablecoin collateral versus other asset categories.

Of the top 20 fiat-backed stablecoins, 16 include “USD” in their names.

The overall narrative of blockchain has seen little change over its 16-year evolution. Indeed, Bitcoin's early proponents did see the potential for cryptocurrency to challenge the dollar's dominance. In recent years, Bitcoin has increasingly been seen as a store of wealth rather than a medium of exchange, somewhat reducing its threat to the dollar. The rise of stablecoins and real-world assets has enabled blockchain to fulfill Bitcoin's original promise by providing a means of exchange that is both stable and yield-generating. The emergence of stablecoins has not diminished the dollar's relevance but instead amplified its role.

Emerging Markets

In emerging markets, dollar-backed stablecoins offer a practical alternative to holding cash or relying on fragile banking systems. In countries with unstable currency environments, consumers and businesses are increasingly inclined to choose the stability of digital dollars when given the option. In the report by Castle Island and Brevan Howard, they released survey results of existing cryptocurrency users in emerging markets. A key finding is that dollar-denominated savings are a significant driver in emerging markets.

47% of respondents indicated that their main purpose for using stablecoins is to save in dollars (this is close to 50% who said they primarily use stablecoins to trade cryptocurrencies or NFTs).

69% of respondents convert their local currency to stablecoins rather than using them for transactions.

72% of respondents said they expect to increase their use of stablecoins in the future.

Note: Surveyed countries include Nigeria, Indonesia, Turkey, Brazil, and India

Whether a user is a small balance holder or a multinational corporation, the dollar could potentially displace other local currencies as economic agents tend to choose the safest, most liquid option.

Stablecoin Legislation by 2025?

Lobbying efforts are increasing, with stablecoin-focused regulations expected to be passed during the Trump administration. Patrick McHenry's stablecoin bill has bipartisan support, originally introduced in 2023 and recently brought to the House by Representative Maxine Waters. Stablecoin legislation has long been seen as the first step towards achieving regulatory clarity in the United States. We anticipate significant progress in 2025, particularly as policymakers increasingly recognize the strategic role stablecoins play in expanding the dollar's influence.

Stablecoins are in the best interest of the United States as they will increase the share of dollar-denominated transactions and create demand for U.S. Treasury securities. A nation with $37 trillion in debt needs allocation, and cryptocurrency will assist in this aspect.

Stablecoins vs. CBDC

For clarity, fiat-backed stablecoins and Central Bank Digital Currencies (CBDCs) are two similar but fundamentally different technologies that should not be confused.

In October, JPMorgan released a report on the de-dollarization trend. They mentioned a potential driving force being payment autonomy through new technologies. They cited projects like mBridge (a multi-CBDC initiative) as potential alternatives to dollar-based transactions.

While emerging payment systems like foreign CBDCs have intensified de-dollarization pressures, we believe that the thriving market of dollar-backed stablecoins counteracts this narrative. We anticipate that decentralized, permissionless blockchain-based stablecoins will be the preferred choice as they offer better privacy, censorship resistance, and cross-platform interoperability.

Demand for U.S. Treasury Bonds through Product Tokenization

According to the U.S. Department of the Treasury, $120 billion of stablecoin collateral is directly invested in U.S. Treasury bonds, leading to an increase in demand for short-term securities.[3] In addition to stablecoins, direct tokenization of U.S. Treasury bonds is also a growing trend. Companies like BlackRock through Securitize, Franklin Templeton, Hashnote, and Pantera's portfolio company Ondo are leading this $40 billion market.

Ondo offers two core products in this area:

USDY (U.S. Dollar Yield Token): This is a tokenized note secured by short-term U.S. Treasury bonds and bank deposits, providing non-U.S. investors with stable and high-quality yield.

OUSG (Ondo U.S. Treasury Short Bond): It offers exposure to short-term U.S. Treasury bonds, allowing eligible purchasers to instantly mint and redeem.

Products like USDY make it easier for overseas individuals to access the U.S. dollar and Treasury bonds compared to traditional channels.

The Dollar-Dominated New Era

Blockchain technology has not weakened the dominance of the U.S. dollar but has instead created a digital infrastructure that reinforces the dollar's status. By globalizing tokenization and mobilizing dollar assets, the dollar remains indispensable amid geopolitical and technological forces driving de-dollarization pressures.

As mentioned in its report, JPMorgan Chase, the structural factors supporting the dollar's dominance—deep capital markets, rule of law, and institutional transparency—are still unparalleled. Stablecoins extend these advantages into the digital and borderless realm.

Once seen as vulnerable in the face of blockchain innovation, the existing hegemon, the dollar, has now emerged as blockchain's biggest beneficiary. The "killer app" of blockchain is likely the dollar itself, demonstrating how technology strengthens existing power structures amid transformation. With the arrival of supportive regulatory frameworks and the surge in demand for tokenized assets, the dollar's migration onto the blockchain could solidify its position as a global financial cornerstone.

Regardless of whether U.S. regulators or legislators are Democrats or Republicans, they would all agree that any force supporting the demand for U.S. Treasury bonds is to be leveraged rather than resisted, making meaningful regulatory progress all but inevitable.

Three Major Trends in DeFi

— Mason Nystrom, Junior Partner

DeFi is rapidly evolving, attracting more users and funds as user experience and interface design improve, and protocols mature.

RWA Flywheel Effect: Endogenous and Exogenous Growth

Since 2022, high-interest rates have supported a significant amount of real-world assets entering the blockchain. However, the transition from off-chain finance to on-chain finance is now accelerating as asset management companies like BlackRock realize that issuing RWAs on-chain brings significant benefits, including: programmable financial assets, lower issuance and maintenance costs, and greater asset accessibility. These benefits, like stablecoins, represent a 10x improvement over the current financial landscape.

According to RWA.xzy and DefiLlama data, RWAs account for 21-22% of Ethereum assets. Most of these RWAs exist in the form of A-rated, US Treasury-backed US bonds. The high-interest rates have made it easy for investors to choose to hold Federal Reserve assets rather than DeFi assets, driving this growth. Although the macroeconomic landscape is changing, reducing the attractiveness of US bonds, the on-chain asset tokenization "Trojan Horse" has breached the walls of Wall Street, paving the way for more RWAs to enter the blockchain.

As more traditional assets move to the blockchain, this will trigger a compounding flywheel effect, gradually merging the traditional financial system with DeFi protocols, and even supplanting it.

Why is this important? The growth of cryptocurrency is attributed to the relationship between external capital and internal capital.

Most of DeFi is internal capital—essentially the cycles within the DeFi ecosystem—and is capable of self-reinforcement. However, it has historically been quite reflexive: it rises, falls, and then rises again. Over time, though, new infrastructure has gradually expanded the overall scale of DeFi.

Through on-chain lending by Maker, Compound, and Aave, leverage has been extended to crypto-native collateral.

Decentralized exchanges, particularly AMMs, have expanded the universe of tradable tokens and sparked on-chain liquidity. But DeFi can only grow its own market to a certain extent. While internal capital (such as speculation on chain assets) has driven the crypto market to become a powerful asset class, external capital—existing in the off-chain economy—is crucial for the next wave of DeFi growth.

Real-world assets represent a significant amount of potential external capital. Real-world assets—commodities, stocks, private credit, forex, etc.—provide the greatest opportunity for DeFi expansion, transcending the capital loop from retail funds to trader pockets. Just as the stablecoin market needs to expand through more off-chain utility, other DeFi activities (such as trading, lending, etc.) will do the same.

The future of DeFi is all financial activities migrating to the blockchain. DeFi will continue to see two parallel expansions: similar internal expansion through more on-chain native activities and external expansion from real-world assets being brought on-chain.

Read more about DeFi trends.

“Buy the Rumor, Buy the News”

A year ago, we released an 11/2021 blockchain letter titled “Upcoming Bitcoin ETF: Buy the Rumor, Buy the News.” We believed that while the age-old adage “buy the rumor, buy the news” played out perfectly in the days of CME Bitcoin futures launch and Coinbase’s public listing, it would not apply to the launch of a spot Bitcoin ETF.

Since the Bitcoin ETF launch, Bitcoin has surged by 103%.

BlackRock’s Bitcoin ETF surpassed its existing 20-year-old gold ETF in just eleven months, becoming the ETF with higher total assets. It set records, hailed as the “greatest launch in ETF history,” being five times faster to reach assets over $500 billion than the next ETF to hit that milestone.

Here’s to a smooth 2025!

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