Crypto giant Bitwise says that parts of the digital asset ecosystem are experiencing “raging bull markets” despite underwhelming sentiment in the asset class at large.

In a new Q1 report, Bitwise chief investment officer Matt Hougan says that “frustrating” would be the best word to describe the first quarter of 2025, but that it was still “historically positive.”

Hougan notes that on top of surging stablecoin adoption and Bitcoin futures trading volume, the tokenization of real-world assets (RWAs) went parabolic in Q1.

“What caught my eye is that, despite the pullback in prices, parts of the crypto market are experiencing raging bull markets. For instance: Stablecoins AUM (assets under management) surged to an all-time high of over $218 billion, up 13.50% quarter-over-quarter. Transaction volume also surged 30.14%. Tokenized real-world assets went parabolic in Q1, growing 37.07% quarter-over-quarter to a new all-time high. Regulated bitcoin futures trading volume and open interest also hit all-time highs, suggesting institutional interest in crypto as a macro trading asset is growing.

As we move into Q2, I would expect these and related areas to lead the market higher.”

Bitwise’s data shows an explosive uptrend for RWAs over the last several years, one that has accelerated in 2025 so far, largely driven by the tokenization of private credit and US Treasuries.

Source: Bitwise

According to Bitwise, Ondo Finance (ONDO) rivals BlackRock for the tokenization of US Treasuries, and eclipses other traditional finance (TradFi) firms like Franklin Templeton and WisdomTree.

Source: Bitwise

Bitwise also says that after years of tightening, central banks across the globe are signalling a pivot towards looser monetary conditions and an expansion of M2 money supply, which, historically, has been “been favorable for risk assets, particularly for digital assets.”

Read the full report here.

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