Sygnum Bank Forecasts New Institutional Influx to Crypto as Bull Market Gains Momentum

Sygnum Bank, a leading Switzerland-based digital asset banking group, has revealed optimistic projections for the cryptocurrency market, forecasting significant institutional adoption and a continued bull run into 2025. According to the latest report from Sygnum, the entry of large institutional investors—who have not yet fully engaged with the crypto space—could drive steep price increases, suggesting that the market has substantial growth potential.

Institutional Investors Could Ignite Further Price Gains

Sygnum’s report highlights that many of the world’s largest institutions have yet to enter the cryptocurrency ecosystem, leaving room for substantial price appreciation as these investors begin to participate. The bank’s analysis points to the current market environment as a unique opportunity for these institutions, especially given the broader expectations of a more crypto-friendly regulatory climate in the United States.

The report suggests that the upcoming engagement by institutional investors could be the key factor in driving further bullish momentum. "The opportunity for further steep price appreciation is from engagement by these investors," Sygnum states in its report. As institutions begin to participate, the crypto market could experience accelerated growth.

U.S. Bitcoin ETFs See Record Inflows

A major catalyst for this anticipated institutional influx has been the surge in Bitcoin exchange-traded funds (ETFs) in the United States. Launched earlier this year, U.S.-based spot Bitcoin ETFs have already amassed an impressive net inflow of $34.55 billion. Despite a $20.8 billion outflow from Grayscale’s Bitcoin Trust (GBTC), BlackRock’s iShares Bitcoin Trust (IBIT) alone has recorded over $35 billion in inflows, underscoring the increasing institutional interest in Bitcoin.

These ETFs have made it easier for traditional investors to gain exposure to cryptocurrencies, particularly Bitcoin, without the complexities of directly trading and holding digital assets. With the U.S. being the world’s largest economy, this trend signals growing mainstream adoption and support for cryptocurrency investments.

Trump’s Pro-Crypto Policies: A Game-Changer for 2025

One of the key drivers behind the optimism surrounding the crypto market is the expectation of pro-crypto policies under the new U.S. administration.

With President-elect Donald Trump set to take office on January 20, 2025, market participants are hopeful for a regulatory environment more conducive to crypto growth. Sygnum believes that the anticipated regulatory shift will serve as a major catalyst for the continued bull run in the coming years.

"Expectations of a much more favorable regulatory climate in the U.S. have been fuelling the rally since Donald Trump’s election victory," the report reads. This shift in regulatory posture is expected to encourage both retail and institutional participation in the crypto space, potentially driving further price appreciation.

Stablecoins Gaining Mainstream Adoption in 2025

In addition to Bitcoin’s expected rise, Sygnum also anticipates that stablecoins will see greater mainstream adoption in 2025. The total market capitalization of stablecoins recently surpassed $200 billion, with Tether (USDT) leading the pack at approximately $140 billion, according to data from CoinGecko.

Despite their current dominance in the crypto ecosystem, stablecoins have mostly been used for trading purposes on exchanges. However, Sygnum’s report hints that this could soon change, as regulatory clarity and integrations with major payment providers like Visa, PayPal, and MasterCard could expand stablecoin use cases.

The report suggests that incoming regulations could pave the way for stablecoins to integrate into global payment systems, further enhancing their utility and helping them become more widely adopted in everyday transactions.

Altcoins: Limited Opportunities Compared to Bitcoin

While Sygnum is bullish on Bitcoin and stablecoins, the bank is less optimistic about the performance of altcoins in the upcoming bull market. Unlike previous bull runs, Sygnum believes that altcoins will not see the same level of enthusiasm or price appreciation, primarily due to the growing prominence of Bitcoin ETFs.

The report explains that Bitcoin ETFs provide investors with market access to Bitcoin in a more traditional financial environment, bypassing the need to directly trade or settle in crypto assets. As a result, Sygnum argues that these investors are unlikely to sell their Bitcoin ETFs in favor of altcoins, limiting the demand for altcoins during the next rally.

The Road Ahead for Crypto

Sygnum’s insights into the future of cryptocurrency point to a promising year ahead, particularly for Bitcoin and stablecoins. With the anticipated shift in U.S. regulatory policy and continued institutional interest, the crypto market is poised for substantial growth in 2025. As the adoption of digital assets becomes more widespread, Sygnum's predictions suggest that the next phase of the crypto bull run will likely be driven by institutional investors, with Bitcoin taking center stage.

Stablecoins are also expected to become more deeply integrated into the global financial system, signaling a new era of digital asset adoption. While the prospects for altcoins remain uncertain, the crypto market's continued maturation presents exciting opportunities for investors and innovators alike. As Sygnum Bank’s report indicates, the future of crypto is bright, with institutional interest and regulatory advancements likely to push the industry to new heights.