Bitcoin (BTC) is set to gain significant upside in 2025, according to Stillmark managing partner Alyse Killeen.
With increasing institutional adoption, regulatory clarity, and innovations in the financialization of Bitcoin, the world's largest cryptocurrency is entering a transformative phase.
Killeen noted that one of the biggest factors in Bitcoin’s growth this year has been Tether’s expansion into Bitcoin and the Lightning Network. With over 400 million users, Tether’s integration brings trillions of dollars of activity into Bitcoin’s ecosystem.
“This move by Tether means users will benefit from Lightning’s instant payments and lower transaction costs,” Killeen said, explaining how this could accelerate Bitcoin’s wider adoption.
Additionally, public companies are increasingly adding Bitcoin to their balance sheets. According to Bitwise, over 70 public companies currently hold Bitcoin, further strengthening its role as a corporate treasury asset.
While regulatory uncertainty has long been a hurdle for crypto, 2025 could be a turning point. “Regulatory clarity is long overdue and will be extremely beneficial not only for Bitcoin, but also for the startup ecosystem that has grown around it,” Killeen said. He noted that clearer rules would allow Bitcoin-focused startups to allocate capital more efficiently, rather than being hedged against unpredictable regulation.
He also noted that the Lightning Network could play a crucial role in the future of AI, as AI models increasingly require micropayments on a larger scale, and Lightning is uniquely suited to facilitate this.
Killeen believes that new Bitcoin financial products will gain traction in 2025:
Bitcoin-denominated life insurance: Firms like Meanwhile, a Stillmark portfolio company, are launching insurance products that allow policyholders to grow their wealth in BTC.
Institutional-grade custody and management tools: CASA develops solutions for companies to securely add Bitcoin to their balance sheets, supporting greater institutional adoption.
“The financialization of Bitcoin is accelerating, bringing more sophisticated investment products and infrastructure to the space,” Killeen concluded.
*This is not investment advice.
