Asset management firm Bitwise expects 2026 to be a breakout year for crypto, with Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Solana (CRYPTO: SOL) all pushing to new all-time highs as institutional forces reshape the market.
What Happened: In its 2026 Outlook, Bitwise argues the traditional four-year crypto cycle is fading.
Institutional adoption, spot ETF flows, on-chain growth, and a pro-crypto regulatory shift are now more powerful drivers than halving's or leverage-fueled boom–bust cycles.
Bitcoin, the firm says, is on track to become less volatile than mega-cap tech stocks like Nvidia, reflecting a broader, more institutional investor base.
ETFs are accelerating Bitcoin's transition into a mainstream, de-risked asset, and that trend should intensify in 2026.
ETFs Absorb Supply As Institutional Demand Surges
Bitwise's core thesis is that ETFs will buy more than 100% of the annual new supply of Bitcoin, Ethereum, and Solana.
Bitcoin ETFs have already absorbed nearly twice the amount of BTC mined since launch.
With firms like Morgan Stanley, Merrill Lynch, and Vanguard opening ETF access, institutional demand is expected to overwhelm new issuance.
Bitwise also predicts half of Ivy League endowments will gain crypto exposure, following early moves by Brown and Harvard—an important signal given the $870 billion endowment pool.
The firm also forecasts over 100 new crypto-linked ETFs in the U.S., ushering in an "ETF-palooza" as regulatory clarity improves.
Crypto Equities, Polymarket Lead The Next Wave
Crypto equities are expected to keep outperforming traditional tech. While major tech stocks are up around 140% over three years, crypto equities are up over 500%, driven by revenue growth, M&A, and regulatory tailwinds.
Bitwise also sees Polymarket open interest hitting new all-time highs, surpassing 2024 election levels as it expands beyond politics into sports, culture, and macro markets.
On-chain vaults—often called "ETFs 2.0"—are expected to double in assets as Wall Street capital moves on-chain.
Also Read: Bitcoin Defends $87,000 While Ethereum, XRP, Dogecoin Slide Ahead Of Japan Interest Rate Decision
What's Next: Bitwise expects Bitcoin's correlation with equities to fall further in 2026. As regulation, ETF flows, and institutional adoption take centre stage, crypto-specific fundamentals, not stock market swings, should increasingly drive performance.
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