If Bitwise Asset Management had to summarize the first quarter of 2025 in a single word, it would be: frustrating.
On paper, the quarter brought several landmark achievements for the cryptocurrency industry. The United States elected its first openly pro-crypto president, who promptly signed an executive order establishing a Strategic Bitcoin Reserve and prioritizing the development of digital financial infrastructure. Regulatory pressure also eased significantly, with the SEC dropping the majority of its enforcement actions against major industry participants.
And yet, markets declined.
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The Bitwise 10 Large Cap Crypto Index fell by 18%.
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Ethereum declined by 45%.
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Crypto-related equities dropped by 27%.
This market pullback occurred paradoxically against a backdrop of positive structural developments.
Signs of Resilience Beneath the Surface
Despite the negative market performance, the Bitwise Q1 2025 report highlights several encouraging trends that may lay the foundation for the next growth cycle:
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Stablecoins reached an all-time high in assets under management at $218 billion, up 13.5% quarter-over-quarter. Transaction volumes also surged by over 30%.
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Tokenized real-world assets (RWAs) grew by 37%, hitting a new historical high. This reflects rising institutional interest in blockchain-based exposure to traditional financial instruments.
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Regulated bitcoin futures markets saw record levels of trading volume and open interest, signaling continued momentum in institutional adoption.
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Since their launch in early 2025, U.S. spot bitcoin exchange-traded products (ETPs) have collectively accumulated over 529,000 BTC—more than double the volume of newly mined bitcoin during the same period.
Stablecoin Legislation on the Horizon
One of the most closely watched developments is the potential passage of federal stablecoin legislation, expected by July 2025. If enacted, this would establish a clear regulatory framework enabling banks, fintechs, and payment providers to issue and support stablecoins at scale. Such clarity could catalyze a new phase of growth, particularly across the decentralized finance (DeFi) ecosystem and adjacent sectors.
About Bitwise
Bitwise Asset Management is the largest crypto index fund manager in the United States. For more than seven years, the firm has supported thousands of financial advisors, family offices, and institutional investors with a full range of index and actively managed strategies—including ETFs, separately managed accounts, private funds, and hedge fund offerings. Renowned for its research-driven approach and deep integration within the crypto ecosystem, Bitwise's team of over 90 professionals.
With fundamentals strengthening, regulatory dynamics shifting in crypto’s favor, and institutional capital flowing into the space at increasing scale, Bitwise believes the groundwork may be in place for the next significant upward movement in the digital asset markets.
For a deeper dive, Bitwise’s full Q1 2025 US Crypto Market Review is available here.