Grayscale Exec Predicts ‘Dozens of Smaller Victories’ for Crypto in 2025

The cryptocurrency industry is set to experience significant progress in 2025, according to Zach Pandl, Managing Director of Research at Grayscale Investments.

Pandl envisions a year marked by “dozens of smaller victories” that will collectively accelerate crypto adoption and integration into mainstream finance.

Institutional Adoption on the Rise

One of the key drivers of this anticipated growth is the increasing interest from institutional investors, particularly pension and endowment funds. Historically, these institutions have largely ignored the crypto market. However, Pandl notes that this trend is shifting as fund managers recognize the long-term potential of digital assets. “It was easy [for them] to ignore it, dismiss it, or set it aside over the last decade, but they’re all now recognizing they can’t do that anymore,” he stated during a recent webinar.

Grayscale’s Zach Pandl in conversation with Ric Edelman on January 15. Source: DACFP

Pandl highlighted that many pension and endowment funds are actively exploring ways to include cryptocurrencies in their portfolios. Some portfolio managers have already allocated up to 5% of their assets to crypto, while formal approvals for broader adoption may come within six to twelve months. This growing institutional interest is expected to bring stability and credibility to the market.

Legislative Developments

Another factor likely to influence the future of the crypto industry is the evolving regulatory landscape in the United States under President Trump. He seemed to be upbeat about more wide-ranging legislation from Congress that could finally bring the sector some much-needed clarity, not to mention perhaps even support. He also suggested that Bitcoin may be made a U.S. reserve asset in the coming years—a long way toward enhanced store-of-value status, at least.

Trump’s campaign popularized the idea of a $BTC reserve as a future economic solution. Source: Atlas via X

The presidential inauguration of Donald Trump is also seen as a potential catalyst for the industry. It is said that the new administration may prioritize crypto-friendly policies such as combating de-banking of crypto firms, approving an XRP ETF, and creating a strategic Bitcoin reserve, which would give digital assets in the United States a much friendlier environment.

Bitcoin’s Growth Trajectory Amid Global Institutional Interest

Pandl is also optimistic about Bitcoin’s price performance. He said it is not “completely outlandish” to see Bitcoin reach $500,000 by 2030, with greater adoption and favorable market conditions. At the middle of January 2025, Bitcoin changes hands at about $104,480, reflecting building investor confidence and renewed momentum in the market.

Bitcoin (BTC) price chart. Source:Bitcoin Liquid Index (BLX) via Brave New Coin

Outside the U.S., sovereign wealth funds are also expected to enhance their exposure to cryptocurrencies in the coming months. Pandl referred to Ethereum as “the most important open source project that has ever been developed,” together with Bitcoin. He also added the growing institutional appetite for DeFi, real-world assets, Ripple’s XRP, and AI tokens as other areas that will further unlock investment potential.

Smaller Wins, Bigger Impact

Pandl’s optimism underscores the transformative potential of cryptocurrencies and blockchain technology. The anticipated “smaller victories” in 2025 are expected to collectively advance the sector’s maturity, positioning it as a vital component of the global financial ecosystem. From increased institutional participation to supportive legislative measures, these developments hint at a promising future for the industry.

As the cryptocurrency sector enters 2025, the convergence of institutional adoption, regulatory progress, and technological innovation sets the stage for a pivotal year. While challenges remain, the anticipated incremental advancements could lay the groundwork for sustained growth and broader acceptance of digital assets. The journey toward mainstream adoption continues, with each “smaller victory” contributing to a larger narrative of transformation and opportunity.