Ethereum (ETH) is poised for a resurgence in 2025 as it rides a wave of emerging trends to capitalize on a $100 trillion opportunity in tokenizing real-world assets (RWAs), according to a letter shared with investors by Bitwise’s senior investment strategist, Juan Leon.
The document highlighted that the crypto market was marked by two narratives this year: Bitcoin’s (BTC) new all-time high, driven by spot exchange-traded funds (ETF) approval in the US, and Solana’s (SOL) meteoric popularity as retail investors piled into memecoin speculation.
As a result, Ethereum’s 66% year-to-date return paled when compared to BTC’s 130% gain and SOL’s 106% rally.
ETFs signaling changes
However, recent signs suggest a reversal of sentiment. Over the past 10 days, Ethereum ETFs have attracted a staggering $2 billion in net inflows, eight times the $250 million net inflows recorded in the preceding four months.
On Dec. 5, data from Farside Investors pointed out that the spot Ethereum ETFs traded in the US registered $428.5 million in inflows, a new daily record propelled by $292.7 million directed at BlackRock’s ETHA.
Moreover, Ethereum ETFs saw less than three-digit daily inflows in only 3 out of the 10 past trading days saw inflows.
This surge indicates that institutional and retail investors are warming up to Ethereum again.
RWA growth
The tokenization of real-world assets might be the fuel for Ethereum’s resurgence. This process involves digitizing traditional assets — such as Treasury bills, real estate, and commodities — into blockchain-based tokens, offering faster, cheaper, and more efficient trading and settlement.
Tokenization is no longer a far-off dream. Major players like BlackRock, Franklin Templeton, and UBS have adopted blockchain technology to tokenize RWAs. BlackRock’s tokenized treasury fund, BUIDL, currently has a market cap of $544 million.
According to the letter, real-world assets are valued at roughly $100 trillion globally,…
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