2025 Digital Asset and Cryptocurrency Trends

The “crypto winter” of 2023, caused by the failure of FTX and regulatory scrutiny of digital assets and cryptocurrencies, led to a renewed interest and strength in the market in 2024. Indeed, 2024 started with the long-awaited approval of Bitcoin exchange-traded funds in the United States by the Securities and Exchange Commission. That breakthrough was followed by additional wins on the regulatory front, including positive outcomes for crypto companies in lawsuits brought by overzealous regulators, the approval of Ethereum ETFs, and the steady development of tokenized investment vehicles by financial institutions. 

Overall, 2024 saw the very real beginning of many applications for digital assets, cryptocurrencies, and blockchain technology that have long been predicted. Regulatory clarity is still lagging in the United States, but the need for proper treatment of cryptocurrency and digital assets became important enough that both major candidates for president included crypto-specific language in their policy proposals. The crypto winter has given way to spring. 

For 2025, Javelin expects much of the same evolution and development in the space, with an emphasis on the technological underpinnings of digital assets and crypto. Whereas previous iterations of growth and optimism tended to focus on crypto as an investment class, trends in the new year will see important developments in the infrastructure, technology, and products that digital assets and crypto make possible. 

Examples of these developments include harnessing blockchain to another technology boom: artificial intelligence. Specifically, Javelin looks for the use of immutable records on blockchains to archive models and inputs as a reaction to regulatory and compliance concerns around the use of AI. Additionally, decentralized physical infrastructure will attract attention as demand increases for the machines and rails—the boxes and wires—that make the ever-growing, computation-intensive technologies like blockchain and AI possible. And finally, the discussions about tokenizing assets, which have so far included art and cars and collectibles, will focus on a foundation of financial services: tokenizing deposits.