With the leading crypto taking center stage this year, $5.4 trillion asset manager Fidelity has said that governments are likely to buy Bitcoin in 2025. Indeed, the financial services firm has projected that nation-states and central banks could be poised to be the next significant investors in the asset.
Amid the asset’s surging popularity last year, there has been increased talk of strategic Bitcoin reserves for several nations. Among them is US President-elect Donald Trump, who has been an outspoken advocate of the asset class. That could be a monumental part of an unforgettable year for the crypto.
JUST IN: 🇺🇸 $5.4 trillion asset manager Fidelity says nation-states & governments will be the next significant investors that 'might' add Bitcoin to their portfolios.
— Watcher.Guru (@WatcherGuru) January 8, 2025
Also Read: Fidelity Says Pension Funds Are Now Exploring Bitcoin
Fidelity Expects ‘Significant Investment’ in Bitcoin By Governments in 2025
2024 has proven to be perhaps the biggest year in Bitcoin’s history. The asset broke new ground in January when it became the first crypto-based ETF in the United States. Moreover, it surged to new heights throughout the year, culminating in it reaching a six-figure price for the first time in November.
However, things could be poised to be even better this year. Indeed, Fidelity has recently said that governments are expected to potentially be the next big investors in Bitcoin in 2025. With inflation and fiscal deficits abounding, there may be an impending surge in BTC reserves across the globe.
Also Read: Bitcoin to $110k: Why BTC is Bound for an All-Time High in January
“We anticipate more nation-states, central banks, sovereign wealth funds, and government treasuries will look to establish strategic positions in Bitcoin,” Fidelity analyst Matt Hogan wrote in a new research report. Moreover, he noted that the ongoing macroeconomic factors have made it the smart play.
Indeed, Hogan notes that not allocating resources to Bitcoin could be more risky than doing so. Among the nations considering such a plan is the United States. US Senator Cynthia Lummis introduced the BITCOIN Act last year.
Moreover, she has recently discussed the plan with personnel from the Trump administration. It is heavily believed his return to the White House will bring with it the nation’s first strategic Bitcoin reserve.