This year, cryptocurrencies have gained broader recognition in Washington and are increasingly favored by the traditional financial sector.
Key Points
Bitcoin reserve companies are becoming a dominant force in the cryptocurrency market, with analysts predicting that this trend will continue into the second half of 2025.
More spot cryptocurrency exchange-traded funds (ETFs) and cryptocurrency-related initial public offerings (IPOs) are also expected to be launched soon.
In recent years, Ether's performance has lagged behind Bitcoin and many smaller crypto assets, but some experts say it is not yet time to give up on this second-largest global crypto asset.
In terms of Bitcoin and the cryptocurrency market, the performance so far this year has been outstanding.
Cryptocurrencies have gained broader recognition in Washington, with President Donald Trump establishing a strategic Bitcoin reserve and the Senate passing the (GENIUS Act). They have also garnered favor in the traditional financial sector; according to data from Farside Investors, as of July 3, the net inflow for 2025 spot Bitcoin exchange-traded funds has reached $14.4 billion.
Bitcoin (BTCUSD) has risen about 15% since the beginning of the year, surpassing the S&P 500 Index's 7% gain. It is not far from the nearly $112,000 historical high set in May and is gradually approaching the bullish year-end target set by analysts at the beginning of the year.
Here are the things cryptocurrency investors will focus on in the second half of this year.
Will Bitcoin reserves become mainstream?
The so-called Bitcoin reserve companies have been a hot topic for 2025. Bitcoin reserve companies refer to enterprises that hold a significant portion of their reserve assets in Bitcoin, often to hedge against inflation or anticipate that Bitcoin will develop into a global, apolitical reserve asset. Some companies, such as Michael Saylor's Strategy (MSTR), even accumulate Bitcoin by issuing stocks or bonds.
Strategy (formerly MicroStrategy) has been committed to this for many years, but now several new companies have entered the field, including Metaplanet and Twenty One. It is estimated that 135 listed companies currently hold Bitcoin as a reserve asset.
"Driven by factors such as global market trends, corporate strategic shifts, and institutional recognition, the second half of 2025 will be a crucial period for the adoption of Bitcoin as a reserve asset," said Stephen Kohl, co-founder and CEO of Bitcoin reserve solutions provider Castle, in an interview with (Investment Encyclopedia). "We are already seeing Bitcoin reserve companies emerging in major capital markets around the world, and I expect this trend to continue."
Kohl expects that large companies, including well-known tech giants, will begin building Bitcoin holdings and determining their allocation strategies before the end of the year. 'Whether for small or large enterprises, the question of whether to acquire Bitcoin is rapidly shifting from 'whether to do it' to 'when to do it,' Kohl added.
Do altcoins have a chance against Bitcoin?
There are questions about whether Bitcoin reserve companies will weaken the demand for smaller, more volatile altcoins.
"The demand for altcoins has traditionally come from two main sources: (1) beta exposure to Bitcoin; (2) differentiated use cases that Bitcoin's blockchain cannot meet," David Launert, head of research at FalconX, told (Investment Encyclopedia). "What we are seeing now is a broader application of Bitcoin reserve companies and tools like options, which can meet the first demand more efficiently and with less friction."
However, Launert stated that Bitcoin reserves can only meet part of the criteria driving altcoin demand. He also cautioned, "This cycle may still be far from over," and in his view, certain types of alternative crypto assets still have opportunities for performance.
"Altcoins with strong and unique foundational value propositions still have a lot of room for performance," Launert said. "Regulatory changes like the cryptocurrency market structure bill, as well as a more tolerant attitude toward decentralized finance (DeFi) experiments, could foster strong new trends."
More cryptocurrency ETFs and IPOs
Of course, Bitcoin reserve companies are not the only way to gain exposure to Bitcoin and other crypto assets through the public market. Spot ETFs for Bitcoin and Ether already exist, and Bloomberg analyst James Siefert stated that similar products for other digital assets may also be on the way. Adjustments to existing ETFs, such as physical redemption and staking, may also occur.
"I believe that by the end of the year, the vast majority (if not all) of the currently submitted 19b-4 filings will be approved," Siefert told (Investment Encyclopedia). "This includes physical (redemption), staking, and about ten individual assets attempting to launch ETFs."
Additionally, the significant success of stablecoin issuer Circle (CRCL) IPO has garnered widespread attention. Galaxy (GLXY) and eToro (ETOR), deeply involved in the cryptocurrency market, also went public earlier this year. According to Nate Geraci, president of ETF Store, more IPOs may be on the way, including those of cryptocurrency exchanges Gemini and Kraken, as well as blockchain technology companies Consensys and Ripple.
Ethereum's moment of success or failure?
Finally, as the native cryptocurrency of the Ethereum blockchain and the long-standing second-largest global crypto asset after Bitcoin, Ether (ETHUSD) may be at a critical juncture in its development history. In recent years, its performance has not only lagged behind Bitcoin but also behind some smaller competitors like Binance Smart Chain and Solana.
A report recently released by a group of Ethereum supporters likened Ether to 'digital oil,' drawing attention. Nevertheless, some investors are skeptical about whether the use of Ethereum technology by companies like Coinbase Global (COIN) and stablecoin issuers will, in the long run, necessarily bring value growth to Ether assets themselves.
That said, Launert believes there are still many reasons not to be overly bearish on Ether.
"There have been clear signs over the past few months that the sentiment in the Ethereum ecosystem is shifting," Launert said. "Ethereum has also benefited from closer ties with traditional capital markets, which is a key price driver in today's environment. Its active CME futures market and the launch of spot ETFs prove this point."
Launert stated that Ether 'is still underweight by many institutional investors.' Analysts say that adding a staking feature to the Ether spot ETF could help improve institutional adoption rates. 'If the current developments proceed as expected, Ether has a lot of catch-up potential.'
According to CoinGecko data, about eight years ago, the exchange rate of Ether to Bitcoin reached a historical high of 0.1475 Ether / Bitcoin, while it has now fallen about 85% relative to Bitcoin.