2025 To See Dogecoin ETF, Strategic Bitcoin Reserve, 'MicroStrategy Of Ethereum,' Predicts Crypto Hedge Fund

Crypto hedge fund Wintermute predicts a potential Dogecoin DOGE/USD ETF launch in 2025 alongside other potentially revolutionary developments like the establishment of a strategic Bitcoin reserve in the United States.

This forecast is part of a broader analysis that forecasts a series of pivotal changes in the digital asset market in 2025, including maturation of the options market and increased institutional participation.

Dogecoin ETF And Bitcoin Reserve Coming?

Wintermute highlights the possibility of "a core asset manager launch a meme coin ETF…our money's on DOGE," reflecting growing institutional acceptance of digital assets and increasingly diversified investment vehicles.

The firm also anticipates significant changes to the regulatory landscape, particularly within the United States.

Wintermute expects "a more business-friendly approach likely to prioritize legislative clarity with bills like the Digital Commodities Consumer Protection Act (DCCPA), classifying cryptocurrencies as commodities" under the next US administration.

The fund predicts the U.S. to “begin consultations to create a strategic Bitcoin reserve,” forcing China, Europe and the United Arab Emirates to follow.

This move, they believe, may reduce regulatory ambiguity and could lead to greater investment in the crypto sector.

Corporation Getting Into Crypto Could Spark MSTR 2.0

Increased corporate involvement in the market is also expected.

"As markets mature, both publicly listed companies and SMEs are expected to increasingly incorporate digital assets into their balance sheets,” Wintermute stated, further noting corporations may include “cryptocurrency lending and borrowing markets, tokenized assets, and other novel financial mechanisms.”

Based on that, the fund predicts a listed corporation to issue debt or shares to acquire Ethereum ETH/USD, dubbing it MicroStrategy MSTR 2.0.

The report’s broader predictions encompass other significant market trends.

According to Wintermute, "The introduction of options on Bitcoin and Ethereum ETFs, along with increased institutional participation in the underlying, is expected to have two key impacts,” one of which is a decline in volatility, as market participants increasingly use hedging techniques.

The firm also expects normalization of skew as options on Bitcoin BTC and Ethereum see similar use to those of traditional assets such as S&P 500 options for risk management.

They see this shift driving further institutional adoption and financial market innovation.

Also Read: Bitcoin Miners Consolidate Power: 12 Firms Now Control 30% Of Network Hash Rate

Other predictions from the report include:

Stablecoin Expansion: “Major tech companies and payment networks, such as Visa V, Mastercard MSTR, and PayPal PYPL, are increasingly poised to integrate stablecoins into their ecosystems."
Corporate Acquisitions: “A large corporate event (dividend/acquisition/merger) will be completed and settled in stablecoins.”
Token Launches and Listings: "The next year is expected to bring a wave of high-profile token launches and significant exchange listings."
Prime Brokerage Integration: "By 2025, crypto could seamlessly integrate with cross-margining solutions, enabling institutions to optimize capital across asset classes."
Spot Cryptocurrency Trading: “A ‘systemically important' bank will offer spot Cryptocurrency trading to clients."
Structured Product Demand: “Digital asset dispersion trades become popularised and lead to structured product demand.”
Non-EVM Layer 1s: "Non-EVM L1/L2s will gain market share, but Ethereum will still be the leader."
DEX Market Share Gains: "DEXs will see strong gains in market share in 2025 if abstraction products get more widely adopted."

Wintermute emphasizes that these predictions represent key trends that are expected to shape the future of the cryptocurrency space in the coming year.

Read Next: