Cryptocurrency had a breakthrough in 2024 with record highs and institutional support from government organisations like the Financial Sector Conduct Authority (FSCA) in South Africa and Donald Trump in the US.

The question is: will this trajectory continue in 2025? Christo de Wit, Luno’s country manager for SA, explained that there would be major changes coming for the crypto space this year.

He first highlighted that heightened institutional investment in crypto and the launch of Bitcoin spot Exchange-Traded funds (ETF) in 2024 led to an uptick in Ethereum ETFs.

“Eight were approved during the year, albeit with less activity than Bitcoin spot ETFs. Crypto enthusiasts predict that the Securities and Exchange Commission’s (SEC) approval of Bitcoin and Ethereum could unlock approvals for these traditional investment products for other smaller-cap crypto assets in 2025,” De Wit said.

Legislation

He said that solid regulatory foundations give institutions greater confidence in integrating crypto into their operations.

“This year, the crypto industry anticipates additional vital legislation, such as the upcoming exchange control regulation, that promises to further integrate digital assets into the broader South African financial system,” De Wit explained.

“If 2024 was the year institutions entering the crypto space took the time to understand new regulations, how to integrate crypto, assess the risks, and set up their operations properly, 2025 will be the year we see much of this work come to fruition.”

AI and crypto convergence

The crypto expert said that Artificial intelligence (AI) will play a major role in the crypto space in 2025.

“AI strengths in automation and data analysis align perfectly with the foundations of cryptocurrency: programmable money or data itself,” he explained.

De Wit said that AI is also transforming decentralised systems.

“Machine learning algorithms are optimising smart contracts, enhancing network security, and even contributing to consensus mechanisms. Additionally, decentralised data marketplaces are emerging, allowing individuals to securely sell their data to train AI systems while maintaining control over how their information is used,” he added.

De Wit argued that this evolution marks a significant shift, where AI and decentralisation converge to build more efficient, transparent, and decentralised systems.

The growth of Bitcoin

Bitcoin just seems to continue to grow, and on Thursday was trading at around $99,717 (R1,870,210) at 9.30am.

In December, over $4 billion had been raised for Bitcoin mining and infrastructure expansion, which signalled confidence in the sector’s long-term potential.

Bitcoin’s exponential growth in 2024 has meant that it has solidified itself as a viable financial asset.

Among institutional investors, bitcoin is now viewed more as a reserve asset than a transactional currency.

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