Bitwise Projects Strong Crypto Growth In 2026 With ETFs, Onchain Vaults, And Altcoins Set For New Highs
In Brief
Bitwise Investments forecasts a bullish 2026 for crypto, driven by declining Bitcoin volatility, accelerating institutional adoption through ETFs, regulatory clarity, expanding onchain vaults, and other factors.
Bitwise Investments, a cryptocurrency-focused asset management firm, published its annual outlook for the digital asset market in 2026.
The firm anticipates a bullish environment, citing continued institutional adoption and advancements in regulatory frameworks as factors likely to sustain positive momentum in the sector. The report includes ten key projections for the year ahead.
According to Bitwise, the factors that drove past cycles—bitcoin halving events, interest rate fluctuations, and leverage-driven booms and busts—are weaker in 2026. Subsequent halving events have diminishing influence, interest rates are expected to decline compared to 2018 and 2022, and leverage in the market has reduced following record liquidations in late 2025, lowering the risk of large-scale blow-ups. Combined with increasing institutional inflows following the approval of spot Bitcoin exchange-traded funds (ETFs) in 2024 and a favorable regulatory shift, these conditions could push Bitcoin to new all-time highs, effectively ending reliance on the traditional four-year cycle.
Bitwise also notes that Bitcoin’s volatility has steadily declined over the past decade, making it less volatile than major tech stocks such as Nvidia, a trend that is expected to continue in 2026. This decline reflects a maturing market, reduced speculative leverage, and the growing participation of traditional investors through ETFs and other regulated vehicles.
Institutional demand via cryptocurrency ETFs is projected to surpass the new supply of Bitcoin, Ethereum, and Solana, continuing the pattern seen since the launch of Bitcoin ETFs in January 2024. For example, ETFs have purchased over 710,000 BTC since their debut, while the network produced only 363,000 new BTC, demonstrating that demand exceeds supply. With the broader rollout of ETFs by firms like Morgan Stanley and Merrill Lynch in 2026, institutional adoption is expected to accelerate, establishing a strong foundation for price growth, even though selling from existing holders could moderate the impact.
Cryptocurrency equities are expected to outperform traditional tech stocks as a result of regulatory clarity and innovation. The Bitwise Crypto Innovators 30 Index, which tracks publicly traded companies providing infrastructure and services for cryptocurrency markets, has outperformed tech equities in recent years, and Bitwise anticipates this trend will continue. Regulatory improvements have enabled companies to launch new products, relaunch ICOs, and explore new revenue streams, while mergers and acquisitions may further support growth.
Polymarket, the prediction market platform, is predicted to surpass its previous open interest peak of $500 million reached during the 2024 US election. This growth is expected to be driven by the opening of the US market to users, institutional backing including a $2 billion investment from Intercontinental Exchange, and the introduction of new markets spanning sports, pop culture, cryptocurrencies, and economics.
Stablecoins are projected to face scrutiny from emerging market central banks due to their fast adoption, which allows users to preserve value in high-inflation environments and potentially undermines local monetary control. As adoption grows, Bitwise anticipates that one or two countries may publicly attribute currency instability to stablecoins, although the underlying cause is often weak local currency.
Ethereum And Solana ATH Targets, ETF Expansion, And Bitcoin’s Reduced Equity Market Correlation
Onchain vaults, sometimes referred to as “ETFs 2.0,” are expected to double in assets under management in 2026. These vaults allow users to deposit stablecoins or other assets, which are then managed by professional curators to generate yield primarily through decentralized finance (DeFi) strategies. Following a period of retracement after volatility in late 2025, the sector is likely to attract institutional-grade management, drawing billions in capital and earning mainstream media attention.
Ethereum and Solana are expected to reach new all-time highs if the US passes market structure legislation, such as the CLARITY Act, which would codify regulatory guidance and provide clarity on oversight responsibilities between the SEC and CFTC. The passage of such legislation could trigger a cryptocurrency bull run, with Ethereum and Solana benefiting most.
Institutional adoption is also likely to expand through Ivy League endowments. With Brown University allocating to Bitcoin ETFs in 2025 and other universities expected to follow, significant institutional capital could flow into cryptocurrencies, reinforcing trends in broader adoption and signaling credibility to other investors.
The US is anticipated to see the launch of over 100 crypto-linked ETFs in 2026, including spot, staking, equity, and index funds, facilitated by clearer regulatory guidelines and a growing market demand. These developments will make it easier for investors to access cryptocurrencies through regulated channels.
Finally, Bitcoin’s correlation with traditional equities is expected to decline in 2026. Cryptocurrency-specific drivers, including regulatory progress and growing institutional participation, are likely to increase Bitcoin’s performance independence from broader market movements, reducing its reliance on traditional macroeconomic trends.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
