- Nation-states are accelerating Bitcoin adoption, with potential strategic reserves to reshape global finance.
- Fidelity has predicted 2025 will see mainstream adoption of Bitcoin ETFs and tokenization as a “killer app.”
Amidst growing speculation around President Donald Trump’s bold initiative to establish a Bitcoin [BTC] reserve in the U.S., other nations are accelerating their adoption efforts.
Fidelity Digital Assets report key highlights
According to a recent report by Fidelity Digital Assets, 2025 could mark a pivotal year for digital assets, with three key trends driving the change.
Nation-state Bitcoin adoption, the mainstreaming of cryptocurrencies through structured digital asset products, and the emergence of tokenization as a revolutionary application.
Remarking on the same, Fidelity Digital Assets’ research analyst Matt Hogan, in the firm’s paper titled “2025 Look Ahead,” said,
“We anticipate more nation-states, central banks, sovereign wealth funds, and government treasuries will look to establish strategic positions in Bitcoin.”
The report further highlighted the growing possibility of countries like Bhutan and El Salvador expanding their Bitcoin holdings as part of national strategic reserves.
Additionally, Hogan emphasized that economic challenges such as inflation, currency depreciation, and fiscal deficits are prompting nation-states to consider Bitcoin as a strategic hedge against geopolitical uncertainties.
The analyst suggested that if the U.S. proceeds with its plans for a Bitcoin reserve, it could spark a wave of covert accumulation by other countries.
“No nation has an incentive to announce these plans.”
Hogan believes this because public declarations could attract more buyers and drive up Bitcoin’s price, complicating accumulation efforts.
Are other nations replicating the U.S. Bitcoin strategy?
That being said, according to Polymarket, the likelihood of Trump establishing a Bitcoin reserve within his first 100 days remains at a modest 30%, suggesting limited immediate action.
However, the U.S.’s increasing focus on Bitcoin has spurred global interest, with nations like China and Russia reportedly engaging in discussions about similar strategies.
Notably, Switzerland has also recently entered the conversation, now exploring the possibility of incorporating Bitcoin into its national reserves.
What lies ahead for digital asset products?
Needless to say, Fidelity analysts also predicted that 2025 will mark the mainstream adoption of digital asset-structured and managed products.
Notably, spot Bitcoin and Ethereum [ETH] exchange-traded funds (ETFs) could lead the way.
“With the initial success of these products, it would not be unreasonable to expect 2025 to bring about more structured passive and actively managed digital asset products to the world of TradFi.”
In his analysis, Hogan highlighted the immense success of Bitcoin and Ether ETFs, emphasizing that “it is difficult to overstate the success” they’ve achieved.
He also pointed out that tokenization is set to become the “killer app” of 2025, with on-chain value expected to rise from $14 billion to $30 billion.
The analyst added,
“Tokenization’s potential in financial services and beyond is only beginning to be realized.”
Thus, the Fidelity researchers have urged investors to “prepare for acceleration” in digital assets, assuring that “investors are not too late to join” and that we may be entering a “new era” for digital assets.
