Nansen: Cryptocurrency institutional adoption trends in 2025 will involve BTC lending, derivatives, and financial asset tokenization

On-chain analytics platform Nansen has shared insights into the key institutional trends that will gain momentum in crypto markets in 2025, with these narratives expected to perform well under a clearer regulatory framework. It said the crypto industry may experience a surge in institutional interest in listed crypto products. As a result, Bitcoin could become part of the default balanced asset allocation among asset managers and pension funds. Nansen analysts noted that buy-side investors may start integrating cryptocurrencies into standard allocations, moving from the traditional 60/40 stock-bond split to a 55/40/5 stock/bond/crypto split. Bitcoin may also become a frequently used collateral in traditional lending and DeFi. It was previously reported that stablecoin issuer Tether was already in talks with financial services firm Cantor Fitzgerald on a $2 billion BTC lending project. Additionally, the launch of new derivatives products such as Bitcoin ETF options indicates that institutional adoption is increasing. Nansen mentioned that such products and their trading platforms will also attract fees from financial intermediaries, so the industry could grow significantly. Additionally, institutions are exploring the tokenization of financial assets at an increasing rate. U.S. companies are taking major steps toward integrating blockchain into financial markets, which could become the basis for growth if authorities provide clear rules for such operations. Another trend that could drive growth in the cryptocurrency industry is stablecoin regulation. If the U.S. makes progress on a regulatory framework for stablecoins, institutions may see greater adoption of tokenized fiat currencies. Meanwhile, Nansen said the market is seeing a healthy rotation among outperforming cryptocurrencies amid a relatively shallow post-election consolidation. While historical seasonality in December points to a positive environment, volatility is likely to increase by January as a new U.S. administration takes office. (CryptoPotato)