Author: Leo Mindyuk, Sarah Morton, CoinDesk; Compiled by: Deng Tong, Golden Finance

In today’s article, MLTech’s Leo Mindyuk provides a cryptocurrency outlook for 2025 and highlights what is possible Key factors driving adoption of these assets.

Cryptocurrency Adoption Outlook 2025: Building a Bridge to the Mainstream

The cryptocurrency industry is entering 2025 with a renewed sense of purpose. Over the past year, the industry has witnessed key developments that point to the increasing integration of cryptocurrencies into traditional finance (TradFi) and the wider adoption of cryptoassets, particularly Bitcoin. However, the road ahead will test the resilience of this evolving ecosystem. As we assess the outlook for 2025, several factors will be critical in shaping the trajectory of adoption: regulatory transparency, institutional engagement, and technological innovation.

1. Regulatory Clarity: Turning Uncertainty into Institutional Guidance

As I said in a CoinDesk podcast when I briefly discussed the election night results and their price action, regulatory transparency is becoming key to cryptocurrency adoption factor. The market has begun to anticipate that newly elected officials will bring long-awaited structure to the digital asset ecosystem. We'll see some of those expectations come into play this year. Key areas where we are likely to see more transparency include:

a) Definition and classification of digital assets: The United States is expected to refine how digital assets are classified—whether they are securities, commodities, or some combination. This clarity will directly impact how tokens are issued, traded, regulated and taxed.

b) Stablecoins: These are likely to be a focus for regulators due to their transformative real-world use cases and potential impact on financial stability.

c) Taxation of Crypto Transactions: Changes have been made recently and we may see clearer tax reporting requirements for digital assets, various related activities and various industry players.

Other topics such as tokenization (including real-world assets), custodial and non-custodial wallets, regulated trading venues, decentralized finance (DeFi), anti-money laundering (AML) and knowing you Know-your-customer (KYC) compliance, as well as consumer protection, will also be actively discussed and may be acted upon.

2. Institutional Engagement: ETFs as Catalysts

Crypto ETFs experienced explosive growth in 2024, with billions of dollars in net inflows and compelling product launches . With the launch of new products, crypto ETFs now represent a rapidly expanding sector of financial markets, attracting significant investor interest and outperforming traditional funds. We may see a variety of adjacent products.

Growing inflows and volumes into 2025 for BTC and ETH ETFs may continue to prove that cryptocurrencies are an assetasset categories and simplify the access procedures for retail and institutional investors. This will pave the way for other single-asset ETFs, multi-asset ETFs, and various adjacent ETFs (e.g., leveraged, inverse, market timing, volatility). If regulatory clarity progresses quickly enough, we may see the first ETFs in the U.S. that generate crypto income (such as staking). These products are likely to generate more investor interest in the asset class and increase inflows into passive and active investment products.

3. Technological Innovation: The Integration of Blockchain Scalability and Artificial Intelligence

Technological advancements in 2025 will be driven by Layer 2 blockchain scalability and AI integration. Aggregation, zero-knowledge proofs, and interoperability will improve transaction efficiency and user experience in decentralized applications (dApps) and DeFi. At the same time, AI agents running on the decentralized network will solve and optimize various tasks and interact with users and each other. This synergy simplifies Web3 interactions and ensures secure and transparent execution of AI decisions on the blockchain. Together, these innovations will lower barriers to entry, attract developers and users, and accelerate mainstream adoption, making 2025 a critical year for the convergence of blockchain and AI.

In summary, the outlook for cryptocurrency adoption in 2025 is very positive, but it is not without challenges. Regulatory clarity, institutional engagement and technological innovation will be the pillars of growth. The question is not whether cryptocurrencies will gain mainstream acceptance, but rather how quickly and in what form it will be accepted. As we enter the next phase, those who adapt to changing circumstances will lead the trends that shape the future.

——Leo Mindyuk, CEO, ML Tech

Q: What has been the most impactful development in the cryptocurrency market over the past year? How do they impact cryptocurrency adoption?

The most significant development in the cryptocurrency space last year was the shift that saw President-elect Donald Trump make cryptocurrencies a key part of his platform. The market is only beginning to consider the impact of the executive and legislative branches, as well as financial regulators, who have not only refrained from cracking down on the cryptocurrency industry, but also encouraged cryptocurrency innovation within the United States. Beyond the adoption of Bitcoin and the possible creation of strategic Bitcoin reserves, the broader implications for financial markets remain unclear to many market participants. Some of the world's largest financial institutions that previously stood on the sidelines are now actively developing cryptocurrency strategies in response to the new pro-cryptocurrencies.

Q: How may the changing regulatory landscape impact cryptocurrency markets and institutional participation in 2025?

The U.S. Securities and Exchange Commission’s enforcement and regulatory approach has had a profound impact on the cryptocurrency market. The shift to a neutral or even positive stance means financial professionals and institutions will need to actively explore how to better serve those clients who are already involved in cryptocurrencies, especially given the decisive role cryptocurrencies play in elections. Additionally, they need to adapt their products to compete in goldFinancial markets and assets increasingly need to remain competitive in a world where cryptocurrencies orbit. Financial advisors in particular now have greater opportunities to serve clients by integrating cryptocurrency allocations and existing cryptocurrency portfolios into comprehensive financial planning and strategies.

Q: Given the macroeconomic climate, how should financial professionals consider integrating cryptocurrencies into broader investment strategies in 2025?

2025 will mark a critical shift for cryptocurrencies from being a mere asset class to the infrastructure that supports a growing share of all asset classes. In other words, as cryptocurrency adoption tracks, financial professionals will be better able to respond to macroeconomic conditions, further accelerating the flywheel of asset tokenization, portfolio allocation, and wider adoption.

——Miguel Kudry, CEO, L1 Advisors