Bitwise Projects New Highs for Bitcoin, Ethereum, and Solana as ETF Demand Rises by 2026

Bitwise Asset Management has released an outlook for 2026, predicting significant growth in the cryptocurrency market, particularly for Bitcoin, Ethereum, and Solana. As demand for exchange-traded funds (ETFs) increases and stablecoin usage expands, these cryptocurrencies are expected to reach new all-time highs.

Key Takeaways

Forecast for New Highs: Bitwise anticipates that Bitcoin, Ethereum, and Solana will achieve new market peaks by 2026.
Institutional Interest: Increased participation from major financial institutions is expected to drive demand for crypto-related ETFs.
Stablecoin Influence: The growth of stablecoins and tokenization is likely to play a crucial role in shaping institutional investment portfolios.
ETF Growth: Bitwise projects the launch of over 100 new crypto-linked ETFs in the U.S. by 2026.
Endowment Investments: Predictions suggest that half of Ivy League endowments will invest in cryptocurrencies.

Bitwise 2026 crypto outlook for Bitcoin, Ethereum, and Solana.

Bitwise's Growth Expectations

In its report, Bitwise asserts that Bitcoin is poised to break away from its usual four-year price cycle. The firm highlights several factors that may support this optimistic outlook, including the diminishing effects of Bitcoin halving events, fluctuations in interest rates, and market cycles driven by leverage in the upcoming years.

The entry of prominent financial players like Citi, Morgan Stanley, Wells Fargo, and Merrill Lynch into the cryptocurrency space is expected to catalyze institutional investments directed towards spot ETFs, further enhancing developments on the Bitcoin blockchain. Bitwise expects Bitcoin's volatility to decrease, pointing out that throughout 2025, Bitcoin showed lower volatility compared to several leading tech stocks.

Potentials for Ethereum and Solana

Bitwise holds a positive view on the future of Ethereum and Solana as well, particularly in light of the anticipated passage of the CLARITY Act. The growth of stablecoins and the trend towards tokenization are identified as critical factors, with Ethereum and Solana likely to emerge as key beneficiaries.

Expectations are high for institutional demand, with ETFs projected to absorb over 100% of the new supply for Bitcoin, Ethereum, and Solana by 2026. The firm estimates that around 166,000 Bitcoin, 960,000 Ethereum, and 23 million Solana coins will enter the market, with ETF purchases expected to surpass these amounts.

Performance Compared to Traditional Stocks

According to Bitwise, cryptocurrency equities are expected to outperform traditional technology stocks. The Bitwise Crypto Innovators Index, which tracks companies involved in providing infrastructure and services for crypto assets, has already shown stronger gains than tech shares in the past three years. Bitwise attributes this growth to potential revenue increases, mergers and acquisitions, and favorable regulatory environments.

Stablecoins and Market Dynamics

As the use of stablecoins expands, Bitwise cautions that they may be held responsible for destabilizing currencies in emerging markets. The report predicts that the market for stablecoins, including tokenized versions of the US dollar, will experience significant growth by the end of 2026. It is possible that one or two nations will blame stablecoins for financial difficulties they face.

The Rise of ETFs in the Crypto Landscape

Bitwise forecasts that more than 100 crypto-linked ETFs will debut in the United States, spurred by the anticipated new listing standards from the SEC, which will allow these funds to operate under a unified regulatory framework. The firm refers to this upcoming surge as “ETF-palooza” in 2026.

Additionally, the report predicts that half of the endowments at Ivy League universities will allocate funds towards cryptocurrencies, and on-chain vault assets are expected to double in the coming years.

In conclusion, Bitwise's insights suggest a promising future for the cryptocurrency market, driven by institutional interest, the rise of ETFs, and key innovations in stablecoins and tokenization.