In its most recent report, Bitwise, a renowned asset manager and issuer of exchange-traded funds (ETFs), has offered an optimistic view for the crypto market in 2026, predicting substantial growth alongside new all-time highs for Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
Megatrends in Crypto?
Bitwise posits that Bitcoin is likely to break away from its conventional four-year price cycle, paving the way for unprecedented records. Several factors support this optimistic outlook.
The influences of previous cycles, such as the Bitcoin Halving, changes in interest rates, and market fluctuations driven by leverage, are projected to play a diminished role in the upcoming years.
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Importantly, the involvement of major institutions such as Citi, Morgan Stanley, Wells Fargo, and Merrill Lynch in the crypto sector is expected to accelerate institutional investments in spot ETFs and spur further on-chain innovations by 2026.
Consequently, Bitcoin is forecasted to exhibit reduced volatility, even suggesting that it has shown lower volatility compared to tech giant Nvidia throughout 2025.
The report also conveys strong confidence in Ethereum and Solana, especially contingent upon the passage of the CLARITY Act. Bitwise asserts that the rise of stablecoins and tokenization signifies notable “megatrends,” with both Ethereum and Solana well-positioned to benefit significantly from this movement.
ETFs to Capture New Market Supply
A surge in institutional demand is anticipated, with ETFs expected to acquire more than 100% of the new supply of Bitcoin, Ethereum, and Solana. By 2026, Bitwise projects that the majority of institutional investors will have access to crypto ETFs.
As Bitwise predicts the influx of new supply into the market, estimates suggest approximately 166,000 Bitcoin valued at $15.3 billion, 960,000 Ethereum worth around $3.0 billion, and 23 million Solana coins totaling about $3.2 billion. Nonetheless, the firm foresees that ETFs may purchase even more than these estimates indicate.
The report further notes that crypto equities are expected to outperform traditional tech stocks. While tech shares have surged by 140% over the past three years, crypto equities have significantly surpassed them.
The Bitwise Crypto Innovators 30 Index, which monitors companies providing essential infrastructure and services for crypto assets, has soared by 585% in that same period. Bitwise believes this momentum will continue into 2026, driven by anticipated revenue growth, mergers and acquisitions, and a favorable regulatory environment.
Stablecoins as Scapegoats for Economic Issues
As stablecoins gain popularity, Bitwise warns that they may become scapegoats for destabilizing emerging market currencies. Currently valued at nearly $300 billion, the market for stablecoins, including tokenized US dollar equivalents like USDT and USDC, is projected to reach $500 billion by the end of 2026.
Amid this increase, it’s likely that one or two nations might attribute their financial difficulties to stablecoins, despite the fact that individuals wouldn’t seek stablecoins if their local currencies were stable.
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Moreover, Bitwise anticipates the establishment of over 100 crypto-linked ETFs in the United States, following the SEC’s implementation of new listing standards, which allow these funds to enter the market under a cohesive regulatory framework. This regulatory clarity sets the stage for what Bitwise refers to as “ETF-palooza” in 2026.
Finally, the firm predicts that half of Ivy League endowments will likely invest in cryptocurrencies, with on-chain vault assets under management expected to double in the forthcoming years.
As of this writing, Bitcoin is trading at $86,165, having experienced notable declines of 2% and nearly 7% over the past 24 hours and week respectively. Presently, the leading crypto is trading 31.8% below its all-time high of $126,000.
Featured image from DALL-E, chart from TradingView.com
