Grayscale predicts 2026: The era of institutionalized crypto assets

Source: Yellow Original Title: What Grayscale Sees Coming in 2026 That Didn’t Exist in Previous Cycles

Original Link: Investment firm Grayscale on Monday stated that 2026 could mark the beginning of the institutionalization phase of digital assets, with regulatory clarity and demand for legal store-of-value substitutes accelerating structural changes in cryptocurrency adoption and investment approaches.

Grayscale describes next year as “the dawn of the institutional era,” highlighting the expansion of exchange-traded products, improved U.S. regulation, and increased participation from wealth advisors and institutional investors.

Speaking on CNBC’s Crypto World program, Grayscale’s Head of Research Zach Pandl said two forces are driving this change: macroeconomic demand for non-statutory store-of-value assets and a clearer regulatory framework for blockchain financial products.

Regulatory Clarity Reshapes Crypto Market Structure

Pandl stated that digital assets are increasingly viewed as financial infrastructure rather than speculative technology, making comprehensive regulation crucial as the industry integrates with traditional financial systems.

He pointed out a series of regulatory milestones that have reshaped the U.S. market over the past few years, starting with Grayscale’s judicial victory in 2023 against the U.S. Securities and Exchange Commission (SEC) regarding Bitcoin (BTC) exchange-traded products, followed by the launch of spot Bitcoin and Ethereum (ETH) ETPs in 2024, and subsequent legislative developments in 2025.

Although the U.S. crypto market structure bill was not approved this year due to the government shutdown, Pandl said momentum has resumed, and he expects breakthroughs in Congress early next year.

He emphasized that bipartisan support is vital for sustained long-term growth and for ensuring cryptocurrencies continue to integrate into the U.S. financial system.

Pandl believes that regulatory clarity could also unlock token issuance for a broad range of entities, from startups to large corporations, making digital tokens a standard part of capital structures alongside stocks and bonds.

Expanding Institutional Access via ETFs and Staking

Grayscale expects that as more digital assets become accessible through exchange-traded products, institutional participation will deepen further.

Pandl said that regulatory simplification has significantly shortened the timeline for bringing crypto ETFs to market, ending years of delays during Bitcoin product approvals.

In recent months, Grayscale has launched ETFs related to assets like Solana (SOL), XRP, Dogecoin (DOGE), and Chainlink (LINK), some of which incorporate staking features.

Pandl noted that staking is becoming a key differentiator for institutional investors seeking yield, and he pointed out that Grayscale is currently conducting large-scale staking of its Ethereum ETF in the U.S.

He added that the expansion of derivatives, including options and futures related to crypto ETFs, could continue into 2026, further integrating digital assets into traditional market infrastructure.

Macro Conditions Support Crypto Institutional Demand

On the price front, Pandl said Grayscale expects Bitcoin to reach a new all-time high in the first half of 2026, driven by the same two pillars supporting broader adoption.

He pointed out that ongoing global debt, concerns over fiat currency devaluation, and expectations of falling U.S. interest rates are factors maintaining demand for alternative store-of-value assets.

Pandl claimed that Bitcoin and Ethereum are increasingly traded alongside assets like gold and silver, benefiting from expectations of a weaker dollar and more flexible monetary policies.

However, he warned that the outlook depends on continued bipartisan progress in cryptocurrency legislation.

Breakdowns in regulatory cooperation or politicization of digital assets ahead of U.S. midterm legislative elections could pose downside risks to the industry.

Pandl also downplayed the influence of digital asset custody firms in 2026, describing them as relatively passive holders who, after attracting significant attention in 2025, may not be major drivers of valuation.