Bitcoin (BTC), once seen as an alternative investment, has now gained mainstream acceptance due to the institutionalization of cryptocurrency markets, according to a report by WisdomTree released on Monday. The study, which explores anticipated cryptocurrency trends up to 2025, indicates that the growing acceptance of BTC is prompting cautious investors to reassess this type of asset.

WisdomTree, a leading investment manager, stated that investment portfolios incorporating Bitcoin consistently outperform those without the top-ranking cryptocurrency.

Dovile Silenskyte, an analyst at WisdomTree, warns that asset managers must embrace this digital asset in their multi-asset portfolios or they stand the risk of lagging in the fast-paced financial landscape. Silenskyte expects Bitcoin adoption to surge this year as more investors seek exposure to this asset class.

The introduction of spot exchange-traded funds (ETFs) for cryptocurrency in the U.S. in 2024 played a significant role in bringing crypto into the mainstream. This trend is predicted to continue this year, especially with a more accommodating regulatory environment in the U.S. under President Trump’s administration. WisdomTree also expects the approval of exchange-traded products (ETPs) for altcoins like Solana’s SOL and XRP in more countries.

According to Silenskyte, the upcoming wave of altcoin ETPs will diversify the crypto investment scene and further incorporate cryptocurrencies into the worldwide financial structure.

The report acknowledges Ethereum’s unique position as the foundation of decentralized finance (DeFi), non-fungible tokens (NFTs), and Web3. However, it notes that the scalability issues prevalent in Ethereum remain a challenge.

Despite these challenges, the report anticipates that recent enhancements, including Dencun, will boost layer-2 adoption on the blockchain.

WisdomTree also pointed out that stablecoins are becoming a crucial part of the global financial system, with networks like Solana being optimal for stablecoin transactions and transfers.

The report further predicts that tokenization, the process of digitalizing the ownership of physical assets on the blockchain, will see a significant increase in 2025. This expansion is expected to revolutionize sectors ranging from private equity to venture capital.

Further reading: Wintermute Predictions on Stablecoin Deals and Bitcoin Reserve in China and Europe Following the U.S. Lead