According to an analytical study by Fidelity, the approval and launch of spot Bitcoin ETPs (exchange-traded products) at the beginning of 2024 have led to a significant increase in demand for access to BTC among both institutional and retail investors. This regulated, transparent, and accessible tool has made investing in Bitcoin easier than ever before. This trend is expected to accelerate further in 2025.
One of the most notable developments today is the emergence of states and governments in this arena. The largest holders of Bitcoin among governments today include the USA, China, the UK, Ukraine, Bhutan, and El Salvador. However, despite holding BTC, many countries acquired this asset mainly through confiscation and the return of funds linked to illegal activities, rather than a desire to establish a strategic long-term position. Furthermore, some governments, such as the USA, have specific requirements for handling this crypto asset or selling it at auctions, which prevents them from counting it as part of their national reserves.
“We expect that 2025 will be a turning point in terms of both adoption and implementation. In other words, we anticipate that more states, central banks, sovereign funds, and treasury departments will begin to form strategic positions in Bitcoin. These institutions may take into account the experiences of Bhutan and El Salvador, which have been able to achieve significant returns on their investments in a relatively short time,” notes Matt Hogan, co-author of the study “Building on Bitcoin” and analyst at Fidelity Digital Assets.