Bitwise: Bitcoin, Ethereum, and Solana Could Hit Fresh Peaks as ETF Demand Overwhelms Supply by 2026
Asset manager and exchange‑traded fund issuer Bitwise has released a bold outlook for the crypto market through 2026, predicting that Bitcoin, Ethereum, and Solana will all set new all‑time highs. According to the firm’s latest report, a combination of surging ETF demand, explosive stablecoin growth, and accelerating tokenization is poised to fundamentally reshape institutional portfolios over the next two years.
Bitcoin expected to break its classic four‑year cycle
Bitwise argues that Bitcoin (BTC) is on track to move beyond its historically rigid four‑year boom‑and‑bust pattern, typically anchored around the Halving events. The firm believes the influence of Halving dynamics on price will gradually diminish as the market matures and as other macro and structural forces take over.
Among the factors Bitwise highlights are changing interest‑rate conditions, a more sophisticated derivatives market, and the growing prevalence of leverage‑driven cycles. These elements, the firm says, will make Bitcoin behave more like a macro asset integrated into global portfolios rather than a niche speculative instrument that simply reacts to supply shocks.
Institutional wall of money: big banks step in
The report points to the entry of heavyweight financial institutions such as Citi, Morgan Stanley, Wells Fargo, and Merrill Lynch as a critical driver of the next phase of adoption. As these firms expand access to spot crypto ETFs and related products for their clients, Bitwise expects institutional allocation to accelerate sharply by 2026.
This new access is not just about buying exposure to price. Bitwise sees it as a catalyst for a broader on‑chain build‑out, as banks and asset managers experiment with custody, settlement, tokenization, and yield strategies that sit directly on public blockchains.
Less volatility, more legitimacy for Bitcoin
Bitwise also forecasts that Bitcoin’s reputation as an extremely volatile asset will soften. The firm notes that, over the course of 2025, Bitcoin’s price swings already came in below those of several major technology stocks. If this trend continues, it strengthens the narrative of Bitcoin as a more “normal” component in diversified portfolios, rather than an outlier suitable only for high‑risk investors.
Lower volatility, combined with regulatory clarity around ETFs and institutional buying, could make it easier for pension funds, insurance companies, and conservative asset managers to justify allocating capital to BTC.
Ethereum and Solana positioned as infrastructure winners
While Bitcoin remains at the center of Bitwise’s outlook, the firm is equally optimistic about Ethereum (ETH) and Solana (SOL). Their upside, however, is framed less as a pure monetary story and more as an infrastructure and application layer play.
Bitwise emphasizes that both networks stand to benefit heavily from two intertwined trends: the rapid expansion of stablecoins and the tokenization of real‑world assets. If these themes continue to gain traction, Ethereum and Solana are likely to serve as the primary rails on which these assets move.
The report also notes that regulatory developments, including possible passage of the CLARITY Act in the United States, could be pivotal. Clearer rules for digital assets would reduce legal uncertainty around building and issuing tokens on Ethereum and Solana, and could unlock more aggressive institutional experimentation with on‑chain products.
ETFs projected to absorb more than 100% of new supply
One of the most striking claims in the Bitwise report is that spot crypto ETFs are on track to buy more coins than the market actually issues each year for several leading assets. By 2026, the firm forecasts that ETFs will soak up over 100% of new supply for Bitcoin, Ethereum, and Solana combined.
Bitwise estimates that roughly 166,000 BTC, 960,000 ETH, and 23 million SOL will be newly created and available to the market over that period. If ETF inflows exceed these numbers, as the firm expects, the result would be a persistent structural supply squeeze—an environment historically associated with upward price pressure and the potential for new highs.
Broad ETF access for institutions by 2026
The report further suggests that by 2026, the majority of institutional investors will have straightforward access to cryptocurrency ETFs across their brokerage and wealth‑management platforms. This shift transforms digital assets from niche, hard‑to‑access products into something that can be added to portfolios with a few clicks, using existing compliance and risk frameworks.
In Bitwise’s view, this “plumbing” upgrade is just as important as investor appetite. When crypto products are fully integrated into the same workflows as stocks and bonds, adoption ceases to be an operational headache and becomes a standard asset‑allocation decision.
Crypto equities expected to outpace traditional tech
Bitwise does not limit its optimism to the tokens themselves. The firm also projects that publicly traded crypto‑related companies—exchanges, miners, infrastructure providers, and software firms—will outperform mainstream technology stocks over the next several years.
Its own Bitwise Crypto Innovators Index, which tracks companies building and servicing the crypto ecosystem, has already delivered stronger returns than the broader tech sector over the last three years. Bitwise attributes this outperformance to several factors: higher potential revenue growth, an active mergers and acquisitions environment, and regulatory developments that increasingly favor compliant, public‑market players.
Stablecoins on track for massive expansion—and controversy
Another major pillar of the 2026 outlook is stablecoins. Bitwise expects the market for dollar‑denominated stablecoins and other tokenized fiat currencies to expand significantly by the end of 2026. These instruments are becoming key tools for cross‑border payments, remittances, trading liquidity, and on‑chain savings products.
However, the firm also issues a warning: as stablecoins become more deeply embedded in emerging market economies, they may be scapegoated for local financial instability. Bitwise anticipates that at least one or two countries could publicly blame stablecoins for weakening their domestic currencies or exacerbating capital flight, even if underlying structural issues play a larger role.
Tokenization as a new backbone for institutional finance
Tokenization—the process of representing real‑world assets like bonds, equities, funds, or real estate as blockchain tokens—is portrayed as one of the most transformative trends heading into 2026. Bitwise argues that tokenization will increasingly influence how institutions structure portfolios, manage liquidity, and conduct settlement.
Ethereum and Solana, with their established developer ecosystems and broad tooling, are expected to capture a large share of this activity. As more traditional assets move on‑chain, demand for block space, security, and compliant smart‑contract infrastructure should feed back into the value proposition of these base layers.
“ETF‑palooza”: Over 100 new crypto‑linked funds
Bitwise predicts that the United States will experience an explosion of crypto‑related ETFs once new listing standards are approved by regulators. The firm’s outlook envisions more than 100 crypto‑linked ETFs hitting the market under a unified regulatory framework, a wave it informally dubs “ETF‑palooza.”
These products are likely to go beyond simple spot exposure. The next generation of ETFs may track baskets of tokens, focus on specific themes like DeFi or tokenized assets, or combine crypto holdings with yield‑bearing strategies, giving investors a far more granular set of tools to express their views on the digital asset economy.
Ivy League endowments and the normalization of crypto
Bitwise also sees elite institutional investors moving further into the space. The report predicts that by 2026, roughly half of Ivy League university endowments will hold some form of cryptocurrency exposure, whether through direct holdings, funds, or tokenized vehicles.
This matters not only for the capital involved but for signaling. When some of the most conservative, long‑horizon pools of capital in the world treat digital assets as a legitimate part of their portfolios, it reinforces the idea that crypto has moved from speculative fringe to enduring asset class.
On‑chain vaults expected to grow assets under management
In parallel, Bitwise forecasts a doubling of on‑chain vault assets under management in the coming years. These vaults—automated strategies that manage crypto assets via smart contracts—are emerging as a bridge between traditional asset management and decentralized finance.
Institutions are beginning to explore vaults for liquidity management, yield strategies, and collateral optimization. As risk controls, auditing standards, and regulatory clarity improve, Bitwise expects more professional capital to flow into these on‑chain vehicles.
What this means for investors
If Bitwise’s 2026 projections play out, the crypto landscape will look markedly different:
– Bitcoin behaves more like a macro asset with tamer volatility.
– Ethereum and Solana solidify their roles as core infrastructure for stablecoins and tokenized assets.
– Spot ETFs and other regulated products become the main gateway for institutional capital.
– Crypto‑linked equities and on‑chain strategies gain prominence alongside the tokens themselves.
For individual and professional investors alike, this scenario implies a market driven less by retail speculation and more by structural flows, regulatory evolution, and the integration of blockchain technology into mainstream finance. New highs for BTC, ETH, and SOL, in Bitwise’s view, are not just a function of hype, but of persistent demand colliding with constrained supply in an increasingly regulated, institutionally‑dominated environment.