Bitcoin Suisse, a prominent provider of crypto finance services, has released its forecast for the crypto market in 2025. The Swiss-regulated crypto startup predicts a bullish outlook, with Bitcoin (BTC) reaching an all-time high above $180’000 and the U.S. adopting BTC as a strategic reserve, as other nations follow suit. The firm also anticipates further involvement from financial giants, with the unveiling of institutional rollups on Ethereum (ETH).
However, among all its projections, the most significant is the expectation that Ethereum-staking exchange-traded funds (ETFs) will outperform Bitcoin ETFs. Bitcoin ETFs made headlines in 2021, with $32 billion in net flows and IBIT nearing $50 billion in assets under management (AUM) in just 225 trading days. However, Bitcoin Suisse predicts a shift in flows towards ETH ETFs post-election.
Key fundamentals underpin Bitcoin Suisse’s Ethereum ETFs 2025 prediction. Notably, the risk-reward proposition of Ether ETFs is becoming increasingly attractive as institutional demand surges. This was evident in the capital flows of November, where Ethereum ETFs surpassed Bitcoin ETFs in daily flows – $332.9 million for ETH compared to $320 million for BTC.
The underperformance of ETH was attributed more to Bitcoin’s head start as an established narrative and the regulatory challenges that surrounded staking yields. Bitcoin Suisse believes that once these hurdles are removed, ETH ETFs could experience significant growth.
The company forecasts that under the new Trump administration, there will be swift approval for ETH staking in ETFs, which could unlock a 3-4% yield. This yield is highly appealing to institutional allocators, particularly in a declining rate environment, and is expected to benefit Ethereum disproportionately. Bitcoin Suisse predicts that staking yields will emerge as the primary catalyst for sustained constructive flows into ETH ETFs.
In addition to the above, the startup also anticipates the approval of new crypto ETFs in 2025. Solana (SOL) and XRP (XRP) are leading this race, with multiple issuers having already filed applications with the U.S. Securities and Exchange Commission.
Bitcoin Suisse’s projections offer a comprehensive and insightful outlook on the trajectory of the crypto market for the coming years. The continued growth of Bitcoin and the potential rise of Ethereum ETFs present an exciting time for both institutional and retail investors. As the crypto market continues to evolve, these projections provide valuable insights into the potential opportunities and challenges that lie ahead.
