Xapo Bank Says BTC’s 2025 Rally Marked a “Foundational Year” for Digital Wealth
Xapo Bank’s 2025 Digital Wealth Report argues that the past year was less about price headlines and more about a structural shift in how BTC is used — from speculative positioning toward long-term wealth behavior, regulated yield, and credit-backed liquidity strategies.
The report, titled “2025 Digital Wealth Report: A Year In BTC”, frames 2025 as a period in which the ecosystem absorbed higher complexity without the kind of systemic shock that defined previous cycles. “The excellent news? No balance sheets blew up last year. No FTX. No systemic shock,” Xapo Bank CEO Seamus Rocca wrote in the opening section.
In that context, Xapo describes a market transitioning toward maturity: long-term holders selectively taking profit, increased demand for borrowing against BTC rather than tradeing it, and an influx of traditional volatility — a combination the bank says is reshaping the profile of digital wealth.
BTC’s 2025 Story Was About Behaviour, Not Just Price
Xapo’s report highlights that BTC’s narrative in 2025 did not resemble earlier boom-and-bust cycles, despite strong upside moves. Rocca notes that if anyone had predicted in late 2022 that BTC would be “pushing towards $126,000 in 2025,” “they would’ve sent you to the asylum.”
But the more significant takeaway, according to Xapo, was that the market did not fracture under stress. “We’ve had a foundational year where the ecosystem absorbed far more complexity without breaking,” Rocca said, adding that what stood out most “wasn’t the price. It was the behaviour.”
The bank describes long-term holders increasingly treating BTC as core wealth — with liquidity needs now met through credit products and yield rather than forced tradeing. “Long-term BTCers, many of whom are now holding the majority of their wealth in BTC, finally felt comfortable taking some profit. That’s healthy,” Rocca wrote, calling profit-taking “a excellent thing” because it refreshes the holder base.
Takeaway
Xapo: BTC Credit and Yield Demand Is Rising as Holders Avoid tradeing
A core theme in the report is that BTC holders are viewking liquidity while keeping exposure intact. Xapo says its product development in 2025 centered on three priorities: “Liquidity without tradeing,” “Regulated BTC Yield,” and “Institutional-grade for individuals.”
The bank links this directly to member behavior, including borrowing against BTC and using yield products. Rocca notes that the bank launched its BTC Credit Fund at the end of the year, describing it as “a reflection of where our members already were,” namely “medium to long-term holders looking for consistent, low risk yield within a regulated framework.”
In Xapo’s view, this is part of a broader shift: “BTC is no longer something our members simply hold. It’s something they increasingly want to put to work.”
The report also makes the case that borrowing against BTC is becoming less speculative and more strategic. In a section on BTC-backed credit, Xapo says the product is increasingly used as “a long-term planning tool rather than a short-term liquidity stopgap,” noting that 365-day loans made up 52% of all loans created in 2025.
Rocca adds: “Among members with active loans, 43% of their BTC holdings are pledged as collateral, which is a clear signal that they are using BTC as productive capital.”
Takeaway
Millennials and Gen X Are Anchoring BTC Wealth, While TradFi Traders Arrive
Xapo’s report identifies a generational shift in BTC ownership patterns within its membership base, with Millennials and Gen X strengthening their (AUM).
Millennials (29 to 44) increased their share of total BTC AUM from 46% in 2024 to 49% in 2025, reinforcing their position as the dominant long-term holders. Gen X (45 to 60) increased its share from 26% to 29%, which Xapo describes as the quickest relative increase of any generation.
“BTC wealth is increasingly anchored by Millennials and Gen X, cohorts that are not only holding more, but holding with purpose,” said Gadi Chait, Investment Manager at Xapo Bank. He contrasts this with a more reactive platform-driven trading base: “There’s a clear generational difference between our client base at Xapo and a younger, more reactive, day-trader-style base that you might view on platforms.”
At the identical time, Xapo argues that is still ahead — but traditional market participants are arriving aggressively. “TradFi bros have arrived, not institutions,” Rocca said. “The next bull run is when the large institutions will arrive. Their clients want it, and that’s the difference.”
That division is reflected in Xapo’s description of two BTC archetypes: long-term conviction holders and short-term allocators. Rocca states: “By and large people are holding. For long-term holders, BTC is now 99% of their wealth.” But he also notes: “We have viewn TradFi people come in to trade off the volatility — that is what TradFi does. They are just looking to make money. They come in for basis trades and arbitrage, still getting volatility.”
