The cryptocurrency industry is set for a major shift, according to Hunter Horsley, the Chief Executive Officer at Bitwise. In a recent social media post, Horsley predicted that 2025 would be the year when corporate Bitcoin adoption will skyrocket. “It feels like 2025 will be big year for new corporates adopting the Bitcoin Standard,” Horsley stated.
The prediction follows Bitwise’s recent filing for an Exchange-Traded Fund (ETF) designed to track firms with significant Bitcoin treasuries. The proposed ETF product will target investment in companies that hold a minimum of 1,000 BTC on their balance sheets.
Bitwise’s regulatory filing outlined that the ETF’s weightings would be determined by the size of a company’s Bitcoin holdings rather than its market capitalization. The list of eligible companies would be identified and updated based on their quarterly financial reports. Furthermore, the index will only feature companies that have a market cap of at least $100 million and a minimum average daily liquidity of $1 million.
Despite these promising developments, corporate Bitcoin adoption has remained relatively stagnant. MicroStrategy (MSTR) and some mining firms have largely been the only major players driving this initiative. As of now, a mere 22 companies have reported holdings of more than 1,000 BTC on their balance sheets.
Many had expected Tesla’s groundbreaking Bitcoin purchase in 2021 to trigger a wave of corporate adoption. However, this anticipated trend did not materialize. In a recent development, a staggering 99% of Microsoft shareholders rejected a proposal to assess Bitcoin investment, indicating the continued hesitancy among major corporations.
Moreover, according to a report by U.Today, only a small fraction of Chief Financial Officers view Bitcoin as a viable store of value. This suggests that there’s still significant skepticism and resistance to the idea of corporations investing in Bitcoin.
As we look ahead to 2025, it’s clear that corporate Bitcoin adoption will not be without its challenges. However, with the growing prevalence of cryptocurrencies and the increasing number of firms recognizing their potential, it’s possible that Horsley’s prediction may yet become a reality. In the interim, it will be crucial for companies to educate themselves on the potential risks and rewards of incorporating Bitcoin into their financial strategies.
