Bitcoin’s trajectory in 2025 was a key topic of discussion on CNBC recently, with Todd Rosenbluth and Dan Egan weighing in on the cryptocurrency’s prospects. With Bitcoin hovering just below the $100,000 mark, the conversation centered around institutional adoption, retail investor engagement, and potential market corrections.
Rosenbluth highlighted the “tremendous year” for Bitcoin ETFs in 2024, pointing to the iShares Bitcoin ETF (IBTC) as a leader. He anticipates increased institutional involvement in 2025, fueled by the recent introduction of Bitcoin options trading on Nasdaq. This, coupled with a growing number of Bitcoin-linked products, such as the enhanced income ETF (BTCI) from Nios and structured protection ETFs from firms like Kalamazoo, suggests a broadening and maturing market.
Egan echoed this sentiment, describing Bitcoin as a “mature asset class” akin to “digital gold.” He believes the focus is shifting from short-term price fluctuations and specific coin selection to broader portfolio management strategies. The key questions now revolve around Bitcoin’s role within a diversified portfolio, including rebalancing tolerances and its impact on other asset allocations.
Addressing the recent surge in retail investors entering the Bitcoin market through ETFs, Egan suggested this trend signifies a broader engagement with the ETF market rather than a speculative, event-driven phenomenon. He believes this increased familiarity with ETFs could drive retail participation in other segments of the market.
However, the discussion also acknowledged potential headwinds. Referencing recent comments from Mike Novogratz, who warned of a possible market correction, the analysts discussed the potential impact on retail investor sentiment. Egan suggested that, given the “performance chasing” tendency and the almost “faith-like” conviction of many crypto investors, a dip might be viewed as a buying opportunity rather than a deterrent.
Looking ahead to 2025, Rosenbluth emphasized the potential for continued growth in actively managed ETFs, particularly from firms like Capital Group, Fidelity, and T. Rowe Price. He questioned whether the sector could maintain its double-digit growth in inflows. Egan, on the other hand, highlighted the potential for further diversification within the bond ETF market, anticipating the development of products tailored to specific niche markets.
