According to a letter shared with investors by Bitwise’s senior investment strategist, Juan Leon, Ethereum (ETH) is expected to see a resurgence in 2025 as it takes advantage of a $100 trillion opportunity in tokenizing real-world assets (RWAs). While Bitcoin (BTC) reached a new all-time high and Solana (SOL) gained popularity this year, Ethereum’s returns lagged behind. However, recent trends suggest a change in sentiment towards Ethereum, with Ethereum ETFs attracting significant net inflows in the past 10 days.
The surge in Ethereum ETF inflows indicates that both institutional and retail investors are once again interested in Ethereum. One potential catalyst for Ethereum’s resurgence is the tokenization of real-world assets, where traditional assets are digitized and traded on blockchain-based tokens. Major players like BlackRock, Franklin Templeton, and UBS have already adopted blockchain technology to tokenize RWAs. With a global RWA market valued at $100 trillion, the potential for Ethereum to generate fees from RWA-linked activity could surpass $100 billion annually.
Ethereum’s dominance in the RWA market is attributed to its position as the most reliable and decentralized smart contract platform, supported by its history of decentralized applications and distributed validator network. As the world’s largest asset managers explore tokenized assets, Ethereum remains the standard due to its reliability. Regulatory changes, such as a more pro-crypto stance from the U.S. Securities and Exchange Commission (SEC), could further boost Ethereum’s growth by providing clarity and removing barriers to institutional participation.
In conclusion, Ethereum is expected to experience a resurgence in 2025, leveraging emerging trends such as the tokenization of real-world assets to capitalize on a $100 trillion opportunity. Recent data suggests renewed investor interest in Ethereum, with significant net inflows into Ethereum ETFs. As the leading smart contract platform, Ethereum’s reliability and decentralized nature position it well to benefit from the increasing adoption of tokenized assets by major asset managers. Regulatory changes may further accelerate Ethereum’s growth by providing clarity and promoting institutional participation in the crypto market.
