Invesco anticipates that 2025 will be a transformative year for the crypto market, spurred by favorable regulatory changes and a more risk-friendly investment climate.

The repeal of SAB 121, which imposed stringent regulations on the custody of crypto assets by publicly traded institutions, is expected to boost institutional participation in the crypto market.

By the end of 2024, spot Bitcoin ETFs launched in the U.S. and Hong Kong garnered $34.6 billion in net inflows, making crypto investments more accessible and likely to drive further price increases.

The macroeconomic landscape, marked by interest rate cuts in major economies, is poised to create a supportive environment for risk-on assets like cryptocurrencies.

Analyst Ashley Oerth from Invesco predicts that the crypto industry will achieve new heights in 2025, driven by enhanced regulatory clarity and supportive policymakers.

The perception of Bitcoin is on the rise, with substantial investments in Bitcoin ETFs bringing their total asset size close to that of gold ETFs, reflecting increasing acceptance among investors.

Positive developments include the intention of President Trump to establish a strategic Bitcoin reserve and appoint crypto-friendly regulators, marking a significant shift from the previous administration's approach.

Advancements in asset tokenization, including projects like tokenized government bonds and the digital euro, are expected to further enrich the crypto landscape.

Following the 2024 U.S. presidential election, the crypto market experienced notable gains, with Bitcoin exceeding $100,000 and the total market value of crypto assets reaching $3.5 trillion by the end of January 2025.

The election of 294 crypto-friendly candidates to Congress in 2024 signifies a shift towards a more supportive regulatory framework for crypto assets.