What to know:
- Grayscale believes rising demand for alternative stores of value and clearer U.S. rules will drive institutional adoption in 2026.
- Bitcoin could reach a new all-time high in early 2026, supported by dollar weakness and Fed rate cut hopes.
- More crypto ETFs and regulated products are expected, making it easier for large investors to enter the market.
Grayscale believes the crypto market may be entering a new phase, one led by large institutions rather than just retail investors. In a recent CNBC interview, Zach Pandl, Head of Research at Grayscale, said 2026 could mark the start of what he calls crypto’s “institutional era.”
Pandl also said Bitcoin could reach a new all-time high in the first half of 2026, supported by global economic uncertainty, a weaker U.S. dollar, possible interest rate cuts, and clearer crypto rules in the United States.
Why Are Institutions Coming
According to Pandl, the current crypto bull market is being driven by two main forces. The first is the rising demand for alternative stores of value. With growing government debt, budget deficits, and fears around currency debasement, investors are increasingly looking beyond traditional assets.
Bitcoin, in particular, is benefiting from this trend. Pandl explained that while crypto has many new technologies and use cases, Bitcoin’s role as a digital store of value remains the biggest driver of demand. He believes this demand will continue into 2026 as global financial imbalances are unlikely to disappear anytime soon. The second major factor is regulation. Pandl said blockchains are financial technology at their core, and for them to grow safely, clear rules are needed to protect users and the financial system.
Regulatory Progress Builds Confidence
Pandl pointed out how far the U.S. crypto industry has come in a short time. In 2023, Grayscale won its legal case against the SEC over Bitcoin ETPs. In 2024, spot Bitcoin and Ether ETPs were approved. In 2025, new laws like the Genius Act and other regulatory steps improved the environment further.
Looking ahead, Grayscale expects bipartisan crypto market structure legislation to pass in early 2026. While delays caused by the long U.S. government shutdown slowed progress, Pandl said lawmakers from both parties have continued working together. He stressed that bipartisan support is key. If crypto regulation turns into a political fight, it could hurt the market. But if cooperation continues, it could unlock major growth by giving clear rules for many digital assets.
Pandl believes startups, established firms, and even Fortune 500 companies could one day issue tokens alongside stocks and bonds as part of their capital structure. This would be a major step toward bringing crypto fully into the mainstream financial system.
Bitcoin Could Hit New Highs in 2026
On price, Pandl said Bitcoin is likely to reach a new all-time high in the first half of 2026. Again, he pointed to the same two pillars: macro demand and regulation. He expects a year of U.S. dollar weakness and possible Federal Reserve rate cuts. Lower interest rates typically support assets like gold, silver, and Bitcoin. As investors search for protection against inflation and currency risks, digital stores of value could benefit. However, Pandl also warned of downside risks. If bipartisan crypto regulation fails or becomes politicized ahead of U.S. midterm elections, it could slow momentum.
Grayscale also expects more crypto assets to be available through exchange-traded products in 2026. Thanks to clearer SEC guidelines, launching new ETFs has become faster and simpler. In recent months, Grayscale has rolled out products tied to assets like Solana, XRP, Dogecoin, and Chainlink, some with staking features.
Final Thoughts
Bitcoin’s recent price action supports Grayscale’s long-term optimism. Over the past 24 hours, Bitcoin rose 3.2%, outperforming both its 7-day and 30-day trends. At the time of writing, BTC is trading near $90,681 and slowly climbing toward the $91,000 level.
Technical signals have turned positive, with MACD momentum flipping bullish while RSI remains neutral. Institutional buying has resumed, ETF flows have stabilized, and whale selling pressure has dropped sharply since early December. Together, these trends suggest Bitcoin’s core demand remains strong as the market looks ahead to 2026.
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