Bitcoin News Today: Galaxy Projects $50B Inflows Into US Spot Crypto ETFs by 2026

Galaxy Digital Forecasts $50 Billion Inflows Into US Spot Crypto ETFs in 2026

Galaxy Digital, a major player in the digital asset space, has released its 2026 market outlook, predicting a significant increase in institutional adoption and regulatory clarity that could drive substantial inflows into crypto markets. The firm anticipates that U.S. spot crypto ETFs could see over $50 billion in net inflows by 2026, driven by a combination of improved market infrastructure and growing investor demand. These projections suggest that the sector is on the brink of mainstream acceptance, despite the volatility that has characterized the previous year according to the firm's analysis.

The 2025 market was marked by uncertainty and rapid shifts in sentiment, with Bitcoin experiencing a sharp correction after reaching an all-time high in October. Galaxy Digital notes that while the near-term price range remains wide, with options markets pricing in scenarios from $70,000 to $250,000 by year-end 2026, the long-term trajectory for Bitcoin appears bullish.

Stablecoins and tokenization have also gained traction, with Galaxy Digital forecasting a surge in stablecoin transaction volumes surpassing traditional payment systems like ACH. As regulatory frameworks clarify, stablecoins are expected to play a central role in global financial infrastructure. Additionally, the firm predicts consolidation among stablecoins tied to traditional financial institutions, with a few large and widely accepted digital currencies dominating the market.

Institutional interest in crypto is set to accelerate in 2026, according to Galaxy Digital. The firm highlights the potential for over 50 altcoin ETFs to be launched in the U.S., in addition to various crypto-themed products. These developments signal a broader acceptance of digital assets as part of mainstream financial portfolios. Major asset allocation platforms are expected to include Bitcoin in their model portfolios, reflecting a shift in how institutional investors view the asset class.

The infrastructure supporting these products is also evolving. Galaxy Digital forecasts that decentralized exchanges (DEXs) could account for over 25% of spot trading volume by 2026, as on-chain business models become more prevalent. The rise of futarchy-based governance in decentralized autonomous organizations (DAOs) is also expected to reshape how governance is conducted in the crypto space, with treasury assets managed under this model projected to exceed $500 million.

Regulatory Developments and Market Sentiment

Regulatory developments will play a crucial role in shaping the 2026 market outlook. The passage of the CLARITY Act, which aims to provide a regulatory framework for crypto similar to the GENIUS Act for stablecoins, is seen as a key milestone. If enacted, the bill would position the Commodity Futures Trading Commission (CFTC) as the primary regulator for crypto assets, a move that industry participants view as favorable.

The legal landscape is also shifting, with Ripple's long-standing SEC case coming to a resolution in 2025. This development has allowed the company to focus on growth initiatives, including the launch of its RLUSD stablecoin and a series of strategic acquisitions. Ripple's success in navigating the regulatory environment has positioned it as a leader in the tokenization space, with its stablecoin now valued at over $1 billion.

Privacy Tokens and DeFi Growth

Privacy-focused cryptocurrencies are expected to see a surge in demand, with Galaxy Digital projecting that the total market capitalization of privacy tokens could exceed $100 billion by the end of 2026. Institutional investors are increasingly concerned with on-chain visibility, driving interest in tokens that offer greater privacy. The rise of privacy tokens is also expected to be supported by the growth of prediction markets, where platforms like Polymarket are projected to see weekly trading volumes surpassing $1.5 billion.

In the DeFi space, crypto-backed loans are expected to grow significantly, with total outstanding loans projected to exceed $90 billion. The market for stablecoin interest rates is also expected to remain stable, providing a consistent yield environment for investors. These developments highlight the maturation of the DeFi ecosystem and its increasing integration into the broader financial system.

Risks and Uncertainties

Despite the positive outlook, risks remain. Galaxy Digital acknowledges that Bitcoin's near-term price trajectory is highly uncertain, with a wide range of possible outcomes priced into options markets. The firm cautions that if Bitcoin fails to sustainably settle above the $100,000–$105,000 range, downside risks could persist. However, the long-term case for Bitcoin remains intact, with institutional access and monetary policy trends pointing to a more favorable environment.

Security remains a concern, as the Web3 industry experienced over 630 security incidents in 2025, resulting in $3.35 billion in losses. While the number of incidents declined compared to 2024, the average loss per incident increased, indicating a shift in attack strategies. Supply chain attacks and phishing schemes are particularly concerning, as they target critical infrastructure and individual users alike.

The Road Ahead

Looking ahead, the crypto market is poised for further transformation in 2026. Galaxy Digital expects increased public listings of crypto firms, with more than 15 companies expected to go public in the U.S. The rise of regulated stablecoins and the expansion of on-chain financial products are expected to drive broader adoption, supported by clearer regulatory guidelines and improved market infrastructure.

For investors, the key will be navigating the volatility and uncertainty that continue to define the sector. While the long-term fundamentals are positive, short-term price movements will remain influenced by macroeconomic factors, regulatory developments, and shifts in investor sentiment. As the market evolves, the focus will shift from speculative trading to more sustainable, utility-driven use cases that align with broader financial and technological trends.