Bitwise Predicts 2025 as the Year for Crypto IPOs, with Kraken and Circle Leading the Charge

Bitwise, the prominent issuer of crypto exchange-traded funds (ETFs), has made bold predictions for the cryptocurrency market in 2025, forecasting a landmark year for public offerings, as well as significant growth for Bitcoin, Ethereum, and Solana. The firm anticipates that at least five major crypto companies, including Kraken and Circle, will go public, marking the beginning of the "Year of the Crypto IPO."

Major Crypto Firms Set to Go Public

In a report titled “10 Crypto Predictions for 2025” published on December 10, Bitwise's investment chief Matt Hougan and research head Ryan Rasmussen predicted that Kraken, Circle, and other crypto industry giants would launch initial public offerings (IPOs) in 2025. These firms are expected to join the ranks of major public companies, with Circle, the issuer of the USDC stablecoin, and Kraken, one of the largest cryptocurrency exchanges, leading the charge.

Alongside Kraken and Circle, Bitwise also named Anchorage Digital, the "crypto bank" that provides custody and financial services for institutional investors, as well as analytics firm Chainalysis and crypto exchange Figure, as likely IPO candidates in 2025.

According to Bitwise, the rising institutional adoption, growing investor demand, favorable macroeconomic conditions, and a more crypto-friendly political environment will provide the perfect storm for a wave of crypto IPOs in the coming year.

Bitcoin and Other Cryptocurrencies Set for Record Growth

In addition to predictions about crypto IPOs, Bitwise forecasted that Bitcoin could reach new heights in 2025, potentially touching $200,000 or more by the year’s end. Looking further ahead, the firm predicted that Bitcoin could surpass gold’s $18 trillion market cap by 2029, with a possible surge to $500,000 if the U.S. government follows through on Senator Cynthia Lummis' proposal to create a strategic Bitcoin reserve.

Ethereum is also expected to see significant growth in 2025, with Bitwise predicting a price surge to $7,000 driven by the expanding use of Ethereum layer 2 networks, growing activity in stablecoins, and the development of tokenized projects on Ethereum.

Moreover, Solana’s native cryptocurrency, SOL, is forecasted to see a 250% increase in value, hitting $750, as serious new projects launch on the network.

Coinbase: A Rising Star in the Brokerage World

Bitwise's report also highlighted the future potential of Coinbase, predicting that the cryptocurrency exchange would become the most valuable brokerage platform by 2025. The firm forecasts that Coinbase’s share price will more than double to $700, pushing the company into the S&P 500.

This rise in value is attributed to Coinbase’s expanding revenue streams, particularly from stablecoins, staking, and custody services, as well as the growing adoption of its Ethereum layer 2 solution, Base. As Coinbase continues to diversify its offerings beyond traditional crypto exchange services, its financial trajectory looks promising.

Bitwise also expects MicroStrategy, the business intelligence firm known for its large Bitcoin holdings, to be added to the Nasdaq-100 index as the market’s next rebalancing occurs. These moves would have a substantial impact on the stock prices of both Coinbase and MicroStrategy, as major fund managers would be required to buy significant quantities of their shares.

Surge in Bitcoin ETF Inflows and Tokenization of Real-World Assets

Looking ahead to 2025, Bitwise expects Bitcoin ETFs to attract even more institutional flows, with net inflows potentially surpassing $33.6 billion, a figure already exceeded in 2024. The firm believes that major wirehouses, including Morgan Stanley, Bank of America, and Wells Fargo, will finally unlock access to Bitcoin ETFs for their wealth managers, enabling trillions of dollars in institutional assets to flow into the Bitcoin market.

The report also forecasts significant growth in the tokenization of real-world assets (RWAs), with the market for tokenized securities expected to rise from $13 billion to $50 billion in 2025. The benefits of tokenization—such as instantaneous settlement, 24/7 liquidity, and lower costs compared to traditional securities—are seen as major drivers of this growth.

AI-Driven Memecoin Mania and Expanding Stablecoin Market

One of the most intriguing predictions in Bitwise’s report is the expected rise of artificial intelligence-driven memecoin mania. AI has already begun influencing the memecoin market, with examples like the AI chatbot Truth Terminal promoting the obscure memecoin GOAT, which reached a $1.3 billion market cap. Bitwise predicts that AI will continue to fuel speculative buying and create even bigger memecoin booms in 2025.

Stablecoins are also expected to experience major growth, with the stablecoin market forecasted to double to $400 billion in the coming year. Bitwise believes that stablecoin legislation in the U.S. will play a key role in this expansion, as regulatory clarity will pave the way for more institutional involvement.

2025: A Transformative Year for Crypto

Bitwise’s predictions for 2025 paint a picture of a rapidly maturing crypto ecosystem. From a surge in crypto IPOs to record growth for Bitcoin and other leading cryptocurrencies, the firm believes that next year will be a pivotal moment for the industry. With growing institutional adoption, advancements in blockchain technology, and increasing regulatory clarity, 2025 could be the year that crypto truly reaches the mainstream.