The world’s largest banks will hold cryptocurrencies in 2025 according to forecasts worth $12 trillion – DL News
- BNY Mellon, State Street, JPMorgan Chase and Citi will provide custody services next year, Galaxy Research said.
- A friendly regulatory environment for banks will provide a path to incubation.
- The four banks have more than $12 trillion in assets under management.
Analysts expect that the four largest banks in the world will begin offering cryptocurrency custody in 2025.
According to For Galaxy Research, the Office of the Comptroller of the Currency (OCC) will create a path to the world’s four largest custodial banks to provide digital asset services.
These are BNY Mellon, State Street, JPMorgan Chase, and Citi. Together, these companies have more than $12 trillion in assets under management.
This would signal almost complete acceptance of the cryptocurrency industry as a legitimate asset for traditional finance. Even if 1% of the capital of these four banks were to flow into cryptocurrencies, it would translate into a much higher market value than it is today.
With such an institutional push, Galaxy expects it will only be a matter of time before nation-states start contributing.
2% or more
BlackRock sent Shock waves When they asked investors to treat Bitcoin like Apple or Amazon.
The asset management giant said an allocation of 1% to 2% is reasonable.
But so far, no big company has pursued this. Next year will be different, Galaxy Research said.
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“At least one wealth management platform will announce a recommended allocation to Bitcoin of 2% or higher,” the analysts said.
Non-aligned countries
After the adoption of companies comes the adoption of the nation state.
Much of the chatter surrounding the Bitcoin Strategic Reserve has centered around the United States.
That’s because cryptocurrency pundits are whispering in Donald Trump’s ear to start buying Bitcoin on behalf of the US government — even though some Bitcoin users believe it’s a process. Bad idea.
However, Galaxy Research said the US government will fall behind in 2025.
“Competition between nation-states, especially non-aligned states, those with large sovereign wealth funds, or even those hostile to the United States, will drive the adoption of strategies to mine or otherwise obtain bitcoin,” the analysts said.
Return season
Although Bitcoin is hogging the spotlight, Galaxy analysts expect Ethereum to make a strong comeback next year.
They expect the ETH/BTC ratio, which measures the value of Ethereum compared to Bitcoin, to fall below 0.03 in 2025 before bouncing back above 0.06 by the end of the year.
Since Ethereum switched to Proof of Stake in the 2022 “merge” upgrade, the ratio has steadily declined as Bitcoin has moved forward. The 0.06 level has not been seen since mid-2023.
Galaxy Research also says the new regulations could boost the value of Ethereum, especially for decentralized finance applications.
“The expected regulatory shifts will uniquely support Ethereum and its application layer, especially decentralized finance, reigniting investor interest,” they wrote.
Crypto market drivers
- Bitcoin fell 1.8% over the past 24 hours to $94,170.
- Ethereum lost 0.6% during the same period, reaching $3,330.
What we read
Pedro Solemano is a markets correspondent based in Buenos Aires. Got a tip? Send him an email at psolimano@dlnews.com.
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2024-12-28 11:29:00
