European crypto investment firm CoinShares has unveiled its market predictions for 2025, outlining key trends likely to shape the industry.
The report highlights a favorable regulatory landscape under the incoming Trump administration, the rapid adoption of Bitcoin ETFs, the emergence of Bitcoin-yielding companies, and notable innovations across Ethereum and Solana networks.
Coinshares Predictions
In the “Outlook—2025” report, CoinShares forecasts significant regulatory developments in the U.S. as Donald Trump returns to the presidency.
https://twitter.com/coinwaft/status/1867182030561128864
Analyst Max Shannon predicts that regulatory overhaul and increased support for Bitcoin miners could foster a thriving environment for digital assets in 2025.
Despite Bitcoin’s sustained momentum, Shannon expects altcoins to outperform the leading cryptocurrency due to a shift in market dynamics under the new administration.
“As the U.S. shifts towards these policies, altcoins are likely to outperform Bitcoin, despite the latter still potentially being one of the best-performing assets in 2025,” Shannon wrote in the report.
Miners solely focused on Bitcoin are expected to surpass those diversifying into other revenue streams like AI and machine manufacturing. This further reinforces the dominance of Bitcoin in the mining sector.
CoinShares underscores the meteoric rise of Bitcoin ETFs, which saw massive inflows throughout 2024.
The top four ETFs – BlackRock Bitcoin ETF, Fidelity Bitcoin ETF, Ark 21Shares Bitcoin ETF, and Bitwise Bitcoin ETF – now collectively hold nearly 1 million BTC. This is close to the holdings of Bitcoin’s pseudonymous creator, Satoshi Nakamoto, estimated at 1.1 million coins.
Moreover, the growth trajectory of Bitcoin ETFs in their first year outpaced gold ETFs, which took five years to achieve similar inflows.
With institutional adoption still in its infancy, only 20% of assets under management in Bitcoin ETFs are held by professional firms. CoinShares sees significant potential for further growth in 2025.
The emergence of Bitcoin-yielding companies is another trend to watch in 2025. These businesses leverage Bitcoin treasury reserves to generate value through yield farming, shareholding growth, or derivative income strategies.
Bitcoin-yielding companies/Source: Coinshares ReportMicroStrategy exemplifies this idea with its “BTC Yield” metric, measuring Bitcoin acquisitions’ contribution to shareholder value. The firm reported a 26.4% increase in its BTC yield from January to November 2024.
CoinShares analyst Satish Patel believes this strategy will drive broader adoption of Bitcoin as a treasury asset in 2025.
Ethereum Layer 2 Growth, Solana Network Upgrade Anticipation Ahead of 2025
According to Coinshares predictions, Ethereum is poised for further Layer 2 adoption as major corporations, including Sony and Kraken, expand their blockchain operations.
Analyst Luke Nolan notes that Layer 2 ecosystems will drive increased demand for Ethereum transactions and associated fee structures.
Ethereum Layer 2’s Daily Transaction/Source: Coinshares reportThe anticipated Pectra upgrade in 2025 promises enhanced network efficiency. However, it also presents challenges in balancing usability with value accrual for ETH.
Similarly, Solana’s development roadmap showcases upgrades through Firedancer, a validator client designed to improve scalability and performance.
Frankendancer, a hybrid client integrating Firedancer’s components, ensures stability during the transition.
These upgrades aim to address throughput bottlenecks and elevate protocol standards, setting Solana on a path toward greater adoption in 2025.
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