Will 2025 Be the Year of Crypto? BRRR ETF Could Lead the Way

With a new administration set to support the crypto industry with potential deregulation, choosing the right crypto ETF could prove an important task.

As we head into 2025, the question on many investors' minds is whether crypto will continue to shine. 2024 was a banner year for crypto, with prices surging and new all-time highs being set. But with a new administration set to support the crypto industry with potential deregulation, could 2025 be an even better year for crypto?

It's certainly possible. After lagging behind other asset classes for much of 2024, crypto prices finally started to pick up steam in the second half of the year. This was largely due to the Federal Reserve's decision to begin cutting interest rates, which had a positive impact on tech and other growth-oriented assets.

As a result, Bitcoin prices more than doubled in 2024, while other cryptocurrencies also posted impressive gains. This led to a surge in interest from both retail and institutional investors, which in turn helped to drive up prices even further.

Now, as we head into 2025, the stage is set for another strong year for crypto. With the Fed's rate cuts continuing to have a positive impact on the market and crypto prices still lagging behind other asset classes, there's plenty of room for further growth in 2025.

Of course, there are no guarantees in the market, and crypto prices could always go down in 2025. But if you're looking for an exciting and potentially lucrative investment, then crypto could be worth considering in 2025.

One way to gain exposure to crypto is through an ETF, such as the Coinshares Valkyrie Bitcoin Fund (BRRR). This fund tracks the price performance of spot Bitcoin and has a 25 bps fee.

The fund launched this year as part of the spot Bitcoin approvals that kickstarted the overall crypto investing space. In tracking the spot price of Bitcoin, BRRR owns the currency in a cold storage wallet. This safeguards the Bitcoins in an offline manner, increasing resistance to hacking.

Together, that has helped the strategy return 45.8% over the last three months per ETF Database data. This beat both the fund's ETF Database Category and Factset Segment averages in that time. Meanwhile, the fund has also gathered more than $850 million in AUM since launching, sitting at $866 million as of December 30th.

So why look to BRRR as the Bitcoin ETF to lead the way into 2025? Well, BRRR leans on the experience of its managers at CoinShares, who offer significant expertise in the Bitcoin space. What's more, BRRR's passive ETF approach makes it a straightforward way to get exposure to Bitcoin itself.

In the new year, Bitcoin could see its price rise with the lagging impact of rate cuts that ended in 2024. Given that tech continues to rise in tandem with crypto, a strong year for crypto could be in the cards. For those interested in the space, BRRR could appeal.