Fineqia’s Crypto Market Analysis: What 2024 Taught Us About 2025

Cryptocurrency had a standout year in 2024.

Analysis from Fineqia International Inc (CSE:FNQ, OTC:FNQQF), the CSE-listed digital asset business, showed that global Exchange Traded Products (ETPs) with digital assets as underlying collateral revealed a 205% year-on-year increase in assets under management (AUM), reaching an all-time high of $151 billion in 2024.

The launch of Bitcoin and Ethereum spot ETFs drove much of the action, bringing in hefty inflows and boosting investor confidence. Donald Trump’s US election win added to the optimism, with his pro-crypto stance hinting at a more supportive environment for digital assets.

As 2025 kicks off, analysts expect the growth to continue: VanEck sees Bitcoin hitting $180,000 in 2025, while Bitwise pegs it to reach $200,000 by the end of 2025. New financial products and regulatory moves will be key factors shaping what comes next.

In this conversation with Proactive, Matteo Greco, research analyst at Fineqia, shares his thoughts on what the numbers are telling us and what’s in store for crypto investors in 2025.

Proactive: Since this is the December report, we’re not just looking at month-over-month trends but also reflecting on the year as a whole. How did the sector perform in 2024?

Matteo Greco: For everyone, I think the standout would be the Bitcoin spot ETFs in the US. As much as there was a lot of bullish sentiment around them, and we anticipated a significant impact, I don’t think anyone expected $35 billion in inflows in just one year. It was remarkable.

The BlackRock ETF, in particular, and the Bitcoin spot ETFs in general, broke record after record. If you go back 12 months and review analyst expectations, I don’t believe anyone predicted such bullish results. This was a major milestone, and it highlighted stronger-than-expected demand from traditional finance (TradFi) participants.

As someone more immersed in the crypto industry, we knew the interaction between TradFi and crypto was growing stronger each year. However, I don’t think anyone expected such a massive impact. This was definitely a pleasant surprise, as it suggests that we, as a crypto-focused community, might be further ahead of the curve than we realized.

It seems like there’s significant demand for these new forms of currency, payment systems, and investment vehicles. What does this say about the willingness of markets, investors, and traditional finance to embrace them?

I think this trend was expected to some extent. Over the past few years, we’ve seen some institutional players becoming less critical and beginning to recognize the positives of Bitcoin and the blockchain industry in general. They’re increasingly viewing it as a viable area for investment or a way to offer new options to their customers.

What’s truly remarkable, though, is the incredible level of demand we’ve seen. Traditional finance instruments, as you know, tend to attract demand primarily from those entrenched in TradFi. So, it’s safe to say that most of the inflows are coming from traditional finance participants. That’s fantastic to see because it reflects tremendous growth.

While crypto natives may want to preserve the industry’s original ethos, this is a natural trade-off as it becomes more mainstream. Increased interest in digital asset products means not all investors will be crypto natives.

Mainstream adoption increases the need for traditional finance businesses to offer services that help people gain exposure. This is also our goal with the ETPs we plan to launch. The sector shows potential for growth, driven by evolving investor demand and regulatory developments, with rising demand for these products already demonstrating that potential.

What stood out to me in your analysis were two key points: the rapid growth of digital asset ETPs and the sustained net inflows. These seem to signal a long-term trend rather than a temporary spike in 2024. Would you agree?

Overall, yes. However, I still expect markets to behave as they always have. Market cycles persist, and while there’s often talk of "super cycles" or something fundamentally different, markets tend to follow familiar patterns. Eventually, this uptrend will peak, likely followed by a couple of years of downtrend—not just in digital assets, but in equities too.

That said, there’s clear year-over-year development in the industry: more investors, higher market capitalization, and increased adoption. This lays the foundation for additional assets to emerge. In the US, for example, while Bitcoin and Ethereum have taken the lead, we’ll likely see other assets follow in time, similar to the trajectory in Europe. Europe has been ahead, with nearly a decade of crypto-linked financial products. The pattern there started with Bitcoin, then Ethereum, and later diversified into altcoins. I believe the US will follow a similar path, so I don’t think growth stops here.

2024 has been a strong year overall, with only minor setbacks. If past cycles are any indication, 2025 could also be a positive year. Historically, peaks in crypto cycles have occurred every four years—2013, 2017, and 2021—with downturns following the year after. If this pattern holds, 2025 could mark the peak of this cycle, with a possible decline beginning in 2026. Of course, we can’t make definitive predictions, but historical trends suggest this scenario is plausible. This is based on historical data and does not constitute financial advice.

Can you expand on how the upcoming US administration might impact this trend? We haven’t seen such a pro-crypto stance from the government in years.

The new administration's focus on business and innovation may create an environment supportive of digital asset developments. His administration’s pro-business approach, coupled with key appointments—like Elon Musk, who was a vocal advocate during the last bull run—suggests a policy framework that could foster a more crypto-friendly environment.

That said, there’s always a difference between words and actions. While expectations are high, we’ll need to see how things play out. Still, optimism is higher than ever regarding the US government’s support for crypto, which is an exciting shift.

What can you share about Fineqia’s plans for 2025?

Our top priority for 2025 is launching ETPs in the market. This has been our main focus throughout the past year, and it remains the most important objective, at least for me.

One of the reasons we produce these reports is to stay on top of market trends, understand where investors are directing their attention, and analyze what competitors are doing. The reports provide valuable insights that inform our strategy and ensure we’re aligned with industry movements. So, for the next few months, issuing ETPs will remain our key goal.