This year, cryptocurrency has gained broader recognition in Washington and is increasingly favored by the traditional financial sector.
Key Points
Bitcoin reserve companies are becoming a dominant force in the cryptocurrency market, and analysts expect this trend to continue in the second half of 2025.
More spot cryptocurrency exchange-traded funds (ETFs) and cryptocurrency-related initial public offerings (IPOs) are also set to launch soon.
In recent years, Ether's performance has lagged behind Bitcoin and many smaller crypto assets, but some experts say it's not 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.
Cryptocurrency has gained broader recognition in Washington, with President Donald Trump establishing a strategic Bitcoin reserve, and the Senate passing the (GENIUS Act). They have also won favor in the traditional financial sector; according to data from Farside Investors, as of July 3, the net inflow total for spot Bitcoin ETFs in 2025 has reached $14.4 billion.
Bitcoin (BTCUSD) has risen about 15% since the beginning of the year, surpassing the 7% increase in the S&P 500 index. 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’s what cryptocurrency investors will be watching 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 those that hold a significant portion of their reserve assets in Bitcoin, usually to hedge against inflation or in anticipation that Bitcoin will develop into a global, non-political reserve asset. Some companies, like Michael Saylor's Strategy (MSTR), even accumulate Bitcoin by issuing stocks or bonds.
Strategy (formerly MicroStrategy) has been committed to this for years, but now several new companies have entered the field, including Metaplanet and Twenty One. It is estimated that there are currently 135 public companies holding Bitcoin as a reserve asset.
"Driven by global market trends, corporate strategic shifts, and institutional recognition, the second half of 2025 will be a key period for the adoption of Bitcoin as a reserve asset," said Stephen Cole, co-founder and CEO of Bitcoin reserve solution provider Castle, in an interview with (Investment Encyclopedia). "We are already seeing Bitcoin reserve companies emerge in major global capital markets, and I expect this trend to continue."
Cole expects that large companies, including well-known tech giants, will begin to build Bitcoin positions and determine their allocation strategies before the end of the year. "Whether it’s small and medium-sized enterprises or large corporations, the question of whether to acquire Bitcoin is rapidly shifting from 'whether to do it' to 'when to do it,'" Cole added.
Do altcoins have a chance against Bitcoin?
There are concerns about whether Bitcoin reserve companies will weaken demand for smaller, more volatile altcoins.
"Demand for altcoins has historically come from two main aspects: (1) beta exposure to Bitcoin; (2) differentiated use cases that Bitcoin's blockchain cannot satisfy," David Launert, head of research at FalconX, told (Investment Encyclopedia). "What we are seeing now is the broader application of Bitcoin reserve companies and tools such as options, which can meet the first demand more efficiently and with less friction."
However, Launert noted that Bitcoin reserves can only meet part of the standards driving demand for altcoins. He also cautioned that "this cycle may not be over yet," and in his view, certain types of alternative crypto assets still have opportunities to perform.
"Altcoins with strong and unique foundational value propositions still have significant room for performance," Launert said. "Regulatory changes such as the cryptocurrency market structure bill, along with a more tolerant attitude towards 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 public markets. Spot ETFs for Bitcoin and Ether already exist, and Bloomberg analyst James Saifert has 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," Saifert told (Investment Encyclopedia). "This includes physical (redemption), staking, and about 10 individual assets attempting to launch ETFs."
Additionally, the significant success of stablecoin issuer Circle (CRCL) IPO has garnered widespread attention. Deeply involved in the cryptocurrency market, Galaxy (GLXY) and eToro (ETOR) also went public earlier this year. According to Nate Geraci, president of ETF Store, there may be more IPOs in the future, such as cryptocurrency exchanges Gemini and Kraken, as well as blockchain technology companies like Consensys and Ripple.
Ethereum's moment of triumph or failure?
Lastly, as the native cryptocurrency of the Ethereum blockchain and the long-standing second-largest global crypto asset after Bitcoin, Ether (ETHUSD) may also be at a critical juncture in its development history. In recent years, its performance has lagged not only behind Bitcoin but also behind smaller competitors like Binance Smart Chain and Solana.
A report recently released by a group of Ethereum supporters compared Ether to "digital oil," drawing attention. Nevertheless, some investors are skeptical about whether the use of Ethereum technology by entities like Coinbase Global (COIN) and stablecoin issuers will necessarily bring value growth to Ether assets themselves in the long term.
That said, Launert believes there are still many reasons not to short Ether too early.
"There have been clear signs in recent months that sentiment in the Ethereum ecosystem is shifting," Launert said. "Ethereum also benefits 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 demonstrate this point."
Launert stated that Ether "is still underweighted by many institutional investors." Analysts say that adding staking features to Ether spot ETFs could help improve institutional adoption. "If current developments proceed as expected, Ether has significant room to catch up."
According to CoinGecko data, about eight years ago, the exchange rate of Ether to Bitcoin reached a historic high of 0.1475 Ether / Bitcoin, while now it has fallen about 85% relative to Bitcoin.