Grayscale Expects End of 4-Year Cycle with Institutions

Key Highlights

• Grayscale researchers have revealed that the “four-year cycle” has officially ended, as institutional investment in crypto is growing rapidly 
• The report suggests that there will be more crypto ETFs launched in 2026
• Apart from this, the report states that bipartisan crypto market structure legislation is expected to become U.S. law in 2026

While the cryptocurrency market is currently going through turmoil, Grayscale, a leading digital asset management company, has shared a research report in which researchers have officially called off the “four-year cycle” as institutional investment in digital assets is rapidly growing. 

This statement from the leading financial institution has sparked a discussion in the community about the new pattern in the cryptocurrency market. 

4-Year Cycle Will End In 2026, Says Grayscale’s Research

In the research, Grayscale made a major revelation, which sounds bullish for the cryptocurrency market. Experts revealed that the cryptocurrency market’s valuation is likely to soar in 2026. 

Grayscale’s Head of Research Zach Pandl @LowBeta_ says Bitcoin $BTC will hit a new all-time high in the first half of 2026:

“I don’t think that we’re going to have a big cyclical top here. My expectation would be that Bitcoin makes a new high in price in the first half of… pic.twitter.com/VfieELE6kr

— WOLF (@WOLF_Financial) December 15, 2025

“As a result, we expect rising valuations in 2026 and the end of the so-called ‘four-year cycle,” or the theory that crypto market direction follows a recurring four-year pattern. Bitcoin’s price will likely reach a new all-time high in the first half of the year, in our view,” stated in the report.

Apart from this, there will be a major shift in the next year, which could “accelerate structural shifts in digital asset investing, which have been underpinned by two major themes: macro demand for alternative stores of value and improved regulatory clarity. Together, these trends will bring in new capital, broaden adoption (especially among advised wealth and institutional investors), and bridge public blockchains more fully into mainstream financial infrastructure.”

Grayscale’s research also mentioned ongoing legislative efforts around the world, which are likely to bring some regulatory clarity for the cryptocurrency market. This regulatory clarity will boost cryptocurrency adoption in the mainstream market. 

According to the report, the U.S. crypto industry will see crypto market structure legislation become U.S. law in 2026. “This will bring deeper integration between public blockchains and traditional finance, facilitate regulated trading of digital asset securities, and potentially allow for on-chain issuance by both startups and mature firms,” stated the report. 

We had a great call today with Chairmen @SenatorTimScott and @JohnBoozman who confirmed that a markup for Clarity is coming in January. Thanks to their leadership, as well as @RepFrenchHill and @CongressmanGT in the House, we are closer than ever to passing the landmark crypto…

— David Sacks (@davidsacks47) December 18, 2025

Recently, David Sacks, U.S. President Donald Trump’s Crypto Czar, confirmed that markup for the CLARITY Act will be released in January. 

“We had a great call today with Chairmen [Tim Scott] and [John Boozman] who confirmed that a markup for Clarity is coming in January,” Sacks stated in a post on social media platform X. “We are closer than ever to passing the landmark crypto market structure legislation that President Trump has called for.”

More Crypto ETFs to Launch in 2026

While prominent crypto exchange-traded funds (ETFs) have taken the world by storm and attracted an impressive institutional investment, Grayscale researchers believe that there will be more crypto-based ETFs going to launch in the next year. 

“ We expect more crypto assets to be available through exchange-traded products in 2026. These vehicles have had a successful start, but many platforms are still conducting due diligence and working to incorporate crypto into their asset-allocation process. As this process matures, look for more slow-moving institutional capital to arrive throughout 2026,” stated in the report.

Also Read: Tron Integrates with Base to Boost Cross-chain Access of TRX