Crypto ETFs, US Regulations, DeFi Boost, and Top 2025 Predictions by Franklin Templeton
Highlights
- Franklin Templeton expects major improvement in crypto regulatory landscape paving way for crypto ETFs for assets like Litecoin, XRP, and Solana.
- The asset manager foresees the establishment of a U.S. stablecoin regulatory framework.
- Franklin Templeton analysts emphasize the growing convergence of AI and blockchain, with DePIN, real-world logistics, etc.
Asset manager Franklin Templeton has outlined its vision for the crypto landscape in 2025 predicting major advancements in crypto regulations, institutional adoption with more crypto ETFs, and other technological evolutions. The asset management giant anticipates a shift from speculation to utility as crypto technologies become integral to global systems.
Crypto ETFs, US Regulations and More Prediction by Franklin Templeton
US SEC Likely to Approve More Crypto ETFs
Analysts at Franklin Templeton believe that the U.S. Securities and Exchange Commission (SEC) under the leadership of Paul Atkins will bring favorable crypto regulatory rules approving more crypto ETF products in the market. The Bitcoin ETFs have hit multiple milestones in 2024, recording more than $500 billion in cumulative trading volume since January 2024.
The spot Bitcoin ETF launch has been pretty successful with total AUM crossing $100 billion in the first year itself. Of these, BlackRock’s IBIT alone contributes to more than $52 billion in AUM. This ETF has surpassed the size of nearly 50 European market-focused ETFs that have been active for over two decades. Moreover, $IBIT has recorded an impressive average daily notional options volume of $1.7 billion over the past three months. Bloomberg strategist James Seyyfart wrote:
“IBIT’s growth is unprecedented. It’s the fastest ETF to reach most milestones, faster than any other ETF in any asset class.”
Following this success, Franklin Templeton analysts believe that other Crypto ETFs for Litecoin, XRP, Solana, HBAR etc. will see approval. The approval of the spot XRP ETF could trigger a massive surge to double digital and beyond for the Ripple cryptocurrency.
Apart from crypto ETFs, Franklin believes that 2025 could be the year for tokenized securities. Favorable policies could reestablish the U.S. as a global hub for crypto innovation, it added.
Stablecoin Frameworks and TradFi Integration
Franklin Templeton foresees a stablecoin regulatory framework in the U.S., paving the way for major financial institutions to issue their own stablecoins. Top market players like Ripple are already in the race to launch its RLUSD stablecoin while Tether looks to further consolidate its position in the expanding stablecoin market.
Banks in the United States and Europe are accelerating plans to issue stablecoins, driven by increasing regulatory clarity and rising market demand. The rollout of the EU’s Markets in Crypto-Assets Regulation (MiCA) and a growing global appetite for blockchain-based payment solutions have pushed traditional financial institutions to challenge established crypto players like Tether Holdings.
This development will drive growth in decentralized finance (DeFi) and foster convergence between traditional finance (TradFi) and crypto infrastructure, reported Franklin Templeton.
Bitcoin Penetration, DePin, AI and Crypto Convergence
Bitcoin’s Growing Dominance in Global Finance
Analysts at Franklin Templeton believe that Bitcoin will further solidify its status as a global financial asset, with sovereign nations and institutions adding BTC to their reserves. As a result, financial players are launching new ETF products having links to Bitcoin.
Earlier this week, Bitwise applied for a Bitcoin Standard Company ETF which will track companies like MicroStrategy, Marathon Digital, and Metaplanet, holding Bitcoin in its treasury. This ETF will track crypto firms holding at least 1,000 BTC, with a market cap of at least $100 million, and average daily liquidity of $1 million.
Additionally, Franklin analysts believe that decentralized physical infrastructure networks (DePIN) will gain traction, addressing real-world applications in logistics and IoT through decentralized solutions.
AI and Crypto Convergence
The integration of AI and blockchain technology will accelerate, with blockchains providing transparency and verification in the AI-driven economy. AI agents are likely to leverage blockchain for automating on-chain transactions, portfolio management, and merging digital content with on-chain activities. Top AI crypto Near Protocol (NEAR), The Internet Computer (ICP), and Render (RNDR) will be on investors’ radar very soon.
Franklin Templeton concludes that 2025 will mark a pivotal transition, as regulatory clarity and technological advances position crypto as a cornerstone of global finance and operations.
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