Fidelity Digital Assets: More nation states, central banks, sovereign wealth funds and government treasuries will adopt Bitcoin strategies by 2025

“We expect more nation states, central banks, sovereign wealth funds, and government treasuries to seek to build strategic positions in Bitcoin,” Matt Hogan, a research analyst at Fidelity Digital Assets, said in the firm’s Jan. 7 report titled “2025 Outlook.” These institutions may take note of the strategies employed by Bhutan and El Salvador, “and the strong returns they have received from these positions in a relatively short period of time,” he added. With challenges such as inflation, currency devaluation, and growing fiscal deficits, not allocating Bitcoin may be more risky for countries than allocating Bitcoin. If the U.S. moves forward with its Bitcoin Strategic Reserve plans, “nation states will likely begin to secretly hoard Bitcoin,” Hogan said. “No country has an incentive to announce these plans, as doing so could potentially reach more buyers and drive up prices.”