Key Takeaways
- Fidelity predicts Bitcoin reserves for nation-states in 2025.
- Nations like Bhutan and El Salvador serve as models for adoption.
- On-chain tokenization value could double by year-end 2025.
Fidelity Digital Assets forecasts a pivotal shift in Bitcoin adoption by nation-states and institutions in 2025, according to its latest report, 2025 Look Ahead.
Nations following El Salvador’s lead
Matt Hogan, a research analyst at Fidelity, highlighted that central banks, sovereign wealth funds, and government treasuries are likely to follow Bhutan and El Salvador’s lead in adopting Bitcoin for strategic reserves.
Hogan, citing factors like inflation, currency debasement, and mounting fiscal deficits, stated:
Not making any Bitcoin allocation could become more of a risk to nations than making one.
Discreet accumulation expected
Hogan suggested that some nations may begin accumulating Bitcoin discreetly, especially if countries like the U.S. consider integrating it into their strategic reserves.
he explained.
No nation has an incentive to announce these plans, as doing so could influence more buyers and drive up the price.
ETFs and tokenization growth
Beyond national reserves, Hogan predicted mainstream adoption of digital asset products, including Bitcoin and Ether exchange-traded funds (ETFs).
He also emphasized the growing role of tokenization, which could see on-chain value rise from $14 billion to $30 billion by the end of 2025.
A new era for digital assets
Fidelity’s report urged investors to act, stating:
We may be entering the dawn of a new era for digital assets, one poised to span multiple years — if not decades.
