Nansen: By 2025, the encryption institutions will adopt trends involving BTC lending, derivatives, financial asset tokenization, etc.

Odaily planet daily news, on-chain analysis platform Nansen shared insights into the important institutional trends that will drive the encryption market in 2025, and these narratives are expected to perform well under a clearer regulatory framework. It is suggested that the encryption industry may experience a surge in institutional interest in listing encryption products. Therefore, Bitcoin may become part of the default balanced asset allocation between asset management companies and pension funds. Nansen analysts pointed out that buyer investors may start integrating encryption currencies into standard portfolios, shifting from the traditional 60/40 stock-bond split to a 55/40/5 stock/bond/encryption currency split. Bitcoin may also become a frequently used collateral in traditional lending and DeFi. Earlier, it was reported that the stablecoin issuer Tether has been in negotiations with the financial services company Cantor Fitzgerald for a $2 billion BTC lending project. In addition, the launch of new derivative products such as Bitcoin ETF options indicates an increasing institutional adoption. Nansen mentioned that such products and their trading platforms will also attract fees from financial intermediaries, so the industry may develop significantly. In addition, institutions are exploring the tokenization of financial assets at an increasingly rapid pace. American companies are taking significant steps to integrate blockchain into financial markets, which could become the foundation for growth if authorities provide clear rules for such operations. Another trend that could drive the growth of the encryption currency industry is stablecoin regulation. If the United States makes progress in stablecoin regulatory framework, institutions may adopt tokenized fiat currencies more. Meanwhile, Nansen states that the market is seeing a healthy rotation between high-performing encryption currencies in a relatively shallow consolidation following the election. While historical seasonality in December suggests a positive environment, volatility may increase in January as the new US government takes office. (CryptoPotato)