Investment firm Grayscale on Monday said 2026 is likely to mark the start of an institutional phase for digital assets, as regulatory clarity and demand for alternative stores of value accelerate structural changes in how cryptocurrencies are adopted and invested in.
The firm described the coming year as the “dawn of the institutional era,” pointing to expanding exchange-traded products, improving U.S. regulation and growing participation from advised wealth managers and institutional investors.
Speaking on CNBC’s Crypto World, Zach Pandl, Grayscale’s head of research, said two forces are driving the shift: macroeconomic demand for non-fiat stores of value and a clearer regulatory framework for blockchain-based financial products.
Regulatory Clarity Reshapes Crypto’s Market Structure
Pandl said digital assets are increasingly being treated as financial infrastructure rather than speculative technology, making comprehensive regulation essential as the sector integrates with the broader financial system.
He pointed to a series of regulatory milestones that have reshaped the U.S. market over the past several years, beginning with Grayscale’s 2023 court victory against the U.S. Securities and Exchange Commission over Bitcoin (BTC) exchange-traded products, followed by the launch of spot Bitcoin and Ether (ETH) ETPs in 2024 and subsequent legislative developments in 2025.
While a U.S. crypto market structure bill did not pass this year due in part to a prolonged government shutdown, Pandl said momentum has resumed, with congressional progress expected early next year.
He emphasized that bipartisan support will be critical to sustaining long-term growth and ensuring crypto remains integrated with the U.S. financial system.
According to Pandl, regulatory clarity could also unlock token issuance by a wide range of entities, from startups to large corporations, allowing digital tokens to become part of standard capital structures alongside equities and bonds.
Also Read: The Unknown Company That Beat Tesla And Nvidia For South Korea's Attention
Institutional Access Expands Through ETFs And Staking
Grayscale expects institutional participation to deepen further as more digital assets become accessible through exchange-traded products.
Pandl said regulatory streamlining has significantly shortened the timeline for bringing crypto ETFs to market, following years of delays during the approval process for bitcoin products.
Over recent months, Grayscale has launched ETFs linked to assets such as Solana (SOL), XRP, Dogecoin (DOGE) and Chainlink (LINK), with some products incorporating staking features.
Pandl said staking is emerging as a key differentiator for institutional investors seeking yield, noting that Grayscale is currently staking its U.S. Ethereum ETFs at scale.
He added that the expansion of derivatives, including options and futures tied to crypto ETFs, is likely to continue through 2026, further embedding digital assets into traditional market infrastructure.
Macro Conditions Support Institutional Demand For Crypto
On pricing, 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 to persistent global debt, concerns around fiat currency debasement and expectations for U.S. interest-rate cuts as factors sustaining demand for alternative stores of value.
Pandl said Bitcoin and Ether are increasingly trading alongside assets such as gold and silver, benefiting from expectations of dollar weakness and easing monetary policy.
However, he cautioned that the outlook depends on continued bipartisan progress on crypto legislation.
A breakdown in regulatory cooperation or politicization of digital assets ahead of U.S. midterm elections could pose downside risks to the sector.
Pandl also downplayed the influence of digital asset treasury companies in 2026, describing them as relatively passive holders that are unlikely to be major valuation drivers after attracting significant attention in 2025.
Read Next: What Changed After The SEC Dropped Its Appeal And Why One Analyst Now Sees XRP At $8