Crypto’s Future: RWAs, Regulation, and Stablecoin Growth
**Crypto’s Future: Real-World Assets, Regulation, and Less Focus on Bitcoin Halving**
The crypto world is entering a new era — and it’s not all about Bitcoin anymore. While Bitcoin’s halving cycles have traditionally been a key marker for the market, the focus is shifting toward more practical things like regulation, tokenized real-world assets (RWAs), and better infrastructure.
According to Coinbase Institutional’s “2026 Crypto Market Outlook,” the next big drivers of growth aren’t just Bitcoin or Ethereum. Instead, tokenized real-world assets — such as U.S. Treasuries and equities — are expected to become a core part of the crypto market, right alongside BTC, ETH, stablecoins, and DeFi.
**Tokenized Assets Are Booming**
Tokenized U.S. Treasuries (not counting stablecoins) have grown to about $18 billion in value — that’s 18 times higher than in 2022. Big names like BlackRock and Ondo Finance are leading this trend. Tokenized commodities also saw major growth, especially gold-backed tokens, which rose sharply along with real gold prices.
**Regulation and ETFs Take Center Stage**
By 2026, regulatory clarity is expected to become the main force shaping the crypto market — not Bitcoin halving. In the U.S., new laws like the 2025 “Genius Act” are laying the foundation for stablecoin rules, while the upcoming “Clarity Act” is set to define market structure.
Regulators like the SEC and CFTC are working on initiatives like “Project Crypto” to make spot ETFs, tokenized assets, and even leveraged crypto products more mainstream. New SEC rules now allow faster approval for crypto ETFs — from 270 days down to just 75. This change, plus the rise of digital asset treasury companies (DAATs), has reduced the influence of Bitcoin miners. Institutions and corporate treasuries now dominate trading flows, making prices less volatile.
Coinbase also points out that Bitcoin’s four-year halving cycle no longer offers a reliable way to predict price moves. There just isn’t enough data, and macro trends now matter more.
**Ethereum and Solana Keep Evolving**
Ethereum had a wild ride in 2025 — dropping 60% early in the year before hitting new all-time highs by late summer. This was mostly due to spot ETH ETFs, DAAT flows, and upgrades like Pectra. More upgrades are coming — Fusaka in December and “Glamsterdam” in 2026 — to boost speed and cut down on centralization risks. Ethereum still hosts over half of all stablecoins, giving it strong control over RWAs and DeFi.
Solana had its ups and downs too. SOL reached around $295 in January 2025 before falling over 60%. Meme coin hype faded, but demand grew from ETFs, DAATs, and on-chain funds. Solana also launched its Fire Dancer client in limited form, aiming for up to 1 million transactions per second. A big upgrade called Alpenglow is planned for early 2026 to improve speed and reliability for apps that need high throughput, such as payments and RWAs. Spot Solana ETFs — many with staking features — are expected to keep investor interest strong.
Coinbase also believes in a future where different blockchains work together — an “interoperable network of networks.” Apps and RWAs will likely run across Ethereum, Solana, Avalanche, BNB Chain, and private chains. The winners will be those that enable seamless cross-chain transactions and shared liquidity.
**Stablecoins: Crypto’s Killer App**
Stablecoins are growing fast. Transaction volume nearly doubled from $22.8 trillion in 2024 to $47.6 trillion in 2025. By 2028, the total stablecoin market could hit $1.2 trillion. While USD-backed coins still dominate, other pegs — including tokenized metals — are starting to gain traction.
**AI Meets Crypto — And Quantum Looms**
AI is starting to merge with crypto tech. Coinbase’s x402 protocol is one example — it could let AI bots make tiny payments on-chain across different blockchains and private systems.
On the security front, quantum computing poses a potential threat to Bitcoin in the future. While it’s not an urgent risk today, moving to quantum-resistant cryptography can’t be put off forever.
**The New Crypto Landscape: Less Hype, More Substance**
Crypto’s next big leap isn’t about meme coins or hype cycles. It’s about building solid infrastructure: regulated ETFs, tokenized assets like Treasuries and equities, stablecoins as payment rails, and DAATs actively participating in staking and DeFi.
In this new phase, how fast these elements mature in 2026 could matter more than whether Bitcoin sticks to its usual price cycle timeline.
Crypto Experts Predict Major Bull Run in 2026
Bitcoin ended 2025 on a sour note, marking its first yearly decline since 2022. However, many crypto experts believe this could be the calm before the storm. They’re predicting that 2026 will be a major turning point for the digital asset market, with a big price rally on the horizon. Several key factors are building excitement: a more crypto-friendly U.S. government, growing interest from big financial institutions, and potential approval of new spot ETFs (exchange-traded funds). All of this could create the kind of bull run investors were hoping for in 2025.
Popular crypto YouTuber Jesse Eckel, who has over 276,000 followers, shared his bold predictions in a recent video. He admitted he was wrong about 2025 being the big year for altcoins and said 2026 is likely to deliver the real breakout. He pointed out that 2025 didn’t follow the usual four-year cycle that many in the crypto world rely on. Instead of being driven by widespread money inflows, the market moved based on hype and institutional buying. That shift led to disappointment, especially as global tariffs and economic uncertainty dragged prices down.
Eckel now believes that by mid-2026, the crypto world will move past the old four-year cycle model. When that happens, he expects prices to jump fast as the market catches up with positive changes that have been ignored. He listed several possible triggers for this shift: rapid growth in stablecoins, more ETF investments in Bitcoin and Ethereum, clearer crypto regulations allowing new token launches, potential approval of altcoin ETFs, interest rate cuts, and even government stimulus ahead of the U.S. midterm elections.
Based on these trends, Eckel updated his predictions. He now sees Bitcoin reaching between $170,000 and $250,000 during the next peak. For Ethereum, he expects a price range of $10,000 to $20,000.
Institutional players are also getting more excited. Andrew Forson, president of DeFi Technologies, thinks big investors will push deeper into crypto through stablecoins and real-world asset tokenization. He calls stablecoins crypto’s “killer app” because they let people move money quickly between cryptocurrencies, yield-generating assets, and regular cash. Forson also sees blockchain becoming essential for managing AI data and powering global financial systems.
Still, not everyone is convinced. Some analysts warn that if current momentum fades or if demand from company treasuries weakens, another crypto winter could hit. Bitcoin has already pulled back from recent highs, raising doubts for some.
Whether 2026 becomes a legendary bull market or another letdown remains one of the biggest open questions in crypto today. For now, all eyes are on what the next year holds for Bitcoin, Ethereum, altcoins, and the growing world of digital finance.
Evolve Funds Announces 2025 ETF Year-End Distributions
**Evolve Funds Announces Final 2025 Year-End Distributions for Select ETFs**
Evolve Funds Group Inc., a leading Canadian investment firm with over $8 billion in assets under management, has announced the final year-end distribution details for several of its ETFs for the 2025 tax year. These distributions include both cash payouts and non-cash reinvested amounts such as income and capital gains.
**Key Distribution Highlights**
The final cash and non-cash (reinvested) distributions apply to various Evolve ETFs. Investors who held units of these funds as of December 31, 2025—the official record date—will receive the declared cash distributions on or around January 8, 2026. Non-cash distributions are automatically reinvested in additional ETF units, which are then consolidated back into the fund. This means investors’ total number of units will remain unchanged, but the tax reporting will reflect the reinvested amounts.
These reinvested distributions are important for tax purposes and will be included in early 2026 tax documents sent to brokers via CDS Clearing and Depository Services.
**Examples of Notable Distributions**
– **Evolve Bitcoin ETF (EBIT)**: Recorded a significant reinvested capital gain of $8.06606 per unit (CAD).
– **Evolve Ether ETF (ETHR)**: Reinvested capital gain of $1.41145 per unit (CAD).
– **Evolve Levered Ether ETF (LETH)**: Topped the list with a capital gain distribution of $15.45171 per unit (CAD).
– **Evolve Solana ETF (SOLA)**: Distributed $1.71345 in capital gains and $0.19817 in reinvested income per unit (CAD).
– **Evolve Cyber Security ETF (CYBR)**: Distributed a capital gain of $1.33020 per unit (CAD).
– **Evolve FANGMA Index ETF (TECH.B)**: Delivered a capital gain distribution of $2.20008 per unit (CAD).
– **High Interest Savings Account Fund (HISA)**: Paid $0.00589 in reinvested income and $0.00571 in cash income per unit (CAD).
– **US Premium Cash Management Fund (MUSD.U)**: Provided a $0.13642 reinvested income and $0.01958 cash income per unit (USD).
Most other funds reported no distributions or nominal amounts, especially among enhanced yield equity and bond ETFs.
**What This Means for Investors**
Investors do not need to take any action regarding reinvested distributions. These amounts are automatically factored into the fund’s net asset value and tax reporting. However, it’s important to understand that these reinvested amounts may affect taxable income for 2025, even though they aren’t received in cash.
Taxable details, including income type and capital gains, will be shared with brokers early next year to assist investors in filing their tax returns.
**Important Notes for Investors**
– These distributions can vary year-to-year depending on market performance and fund activity.
– Reinvested distributions don’t change your number of fund units but may have tax implications.
– For more details on each fund’s distribution, visit www.evolveetfs.com.
**About Evolve Funds Group Inc.**
Evolve is one of Canada’s most innovative ETF providers, offering products that target growth sectors, thematic investing, and enhanced yield strategies. The company partners with top global investment managers to bring forward-thinking investment tools to Canadian investors.
**Disclaimer**
Investing in ETFs involves risks. Unit values fluctuate, and past performance doesn’t guarantee future returns. Always read the fund’s prospectus before investing. Brokerage commissions may apply when buying or selling ETF units.
Evolve ETFs are not affiliated with or endorsed by S&P Dow Jones Indices, Nasdaq, or any related entities mentioned in index licensing disclosures.
Bitcoin Ends 2025 Lower Amid ETF Outflows, Fed Action
**Bitcoin Ends 2025 on a Sour Note Amid Big ETF Outflows and Fed Liquidity Boost**
Bitcoin wrapped up 2025 with a rocky finish. The world’s top cryptocurrency closed the year at $87,496 — down 6% from its $93,381 price at the end of 2024. At the same time, spot Bitcoin ETFs saw heavy outflows, losing a combined $348 million across all 12 funds during the final trading session of the year.
Ethereum ETFs didn’t fare any better. They reported $72.06 million in outflows and zero inflows across the nine available funds. However, not all was negative — Solana and XRP ETFs posted small gains of $2.29 million and $5.58 million, respectively.
**Fed Injects Liquidity as Banks Feel Year-End Pressure**
Adding to the market drama, the U.S. Federal Reserve pumped $74.6 billion into the financial system through its Standing Repo Facility — the largest single-day injection since the COVID-19 crisis. This move was meant to help banks manage their year-end funding needs by borrowing against safe assets like Treasuries and mortgage-backed securities.
Although this action isn’t considered emergency stimulus, it does suggest that the Fed may stay flexible with monetary policy in 2026. That could mean less risk of aggressive interest rate hikes, which is generally good news for riskier assets like cryptocurrencies.
**Regulatory Clarity Drives Bitcoin’s Earlier Surge**
Earlier in 2025, Bitcoin had surged past $90,000, largely thanks to greater regulatory clarity after the U.S. elections. Analysts believe that unclear rules had been holding back Bitcoin’s price — possibly suppressing it by as much as 50%.
Experts are also watching declining demand for U.S. government debt and expected interest rate cuts in 2026, both of which could boost crypto markets. Still, even though some institutional players are optimistic, ETF data shows that investor interest is still weak — especially among retail traders.
**Market Indicators Flash Fear as Retail Interest Drops**
Technical signals also look gloomy. Bitcoin has returned to “Extreme Fear” territory on the Fear and Greed Index, suggesting many investors are nervous. Some analysts believe Bitcoin is now oversold, a condition that has previously led to major price rallies within months.
But so far, Bitcoin and Ethereum ETFs continue to show negative momentum, with their 30-day moving averages still trending downwards.
**Three Possible Paths for Bitcoin in 2026**
Looking ahead to 2026, analysts see three main scenarios for Bitcoin:
1. **Most likely:** Bitcoin trades in a wide range between $80,000 and $140,000. This would be driven by inconsistent ETF flows and political uncertainty around the U.S. midterm elections.
2. **Moderate chance:** A recession causes investors to pull back from risky assets, pushing Bitcoin down toward $50,000.
3. **Less likely:** A more relaxed economic environment with strong institutional buying could lift Bitcoin to between $120,000 and $170,000.
**Shifting Capital Flows and Political Risks**
Some experts say money that usually flows into crypto went elsewhere in 2025 — like AI tech stocks or precious metals. Concerns about U.S. debt and political gridlock may limit how aggressive the government can be with economic policies heading into the elections.
Still, if the Fed loosens monetary policy next year, Bitcoin could be one of the biggest winners as cheap money returns to the market.
**Major Moves in Crypto Adoption Despite Market Woes**
Despite weak prices, institutional interest in crypto continued to grow throughout 2025. Vanguard reversed its long-time ban on crypto by allowing users to trade Bitcoin, Ethereum, Solana, and XRP ETFs on its platform.
In December, the Commodity Futures Trading Commission (CFTC) also approved spot crypto ETFs to be listed on registered futures exchanges — a big step forward for mainstream crypto adoption.
**What Comes Next: A Bear Market or New Highs?**
Some veteran investors think we’re in for a longer bear market similar to those that followed past Bitcoin halvings in 2014, 2018, and 2022. They predict Bitcoin could fall to around $60,000 by early fall before starting its next big rally — possibly peaking in 2028 or 2029.
There’s still a small chance of a final price surge before another correction, but that seems less likely as time goes on. Many believe late 2026 will be a great time to accumulate Bitcoin ahead of the next halving cycle, which could trigger another major bull run.
**Summary**
Crypto markets closed out 2025 on a weak note with falling prices and large ETF outflows, especially for Bitcoin and Ethereum. While some institutional players remain optimistic about crypto’s future in 2026 due to regulatory clarity and potential Fed easing, retail interest appears to be fading. With mixed signals across the board and major macro uncertainties ahead, investors are preparing for a wide range of possible outcomes in the coming year.
Bitcoin Ends 2025 Down, Outlook Mixed for 2026
Bitcoin wrapped up 2025 on a rough note, closing the year at $87,496 — down 6% from its end-of-2024 price of $93,381. Spot Bitcoin ETFs didn’t do much better, with $348 million in net outflows across all 12 available funds. Ethereum ETFs also struggled, losing $72 million with no new money coming in.
Despite the broader decline, there were a few bright spots. Solana and XRP ETFs saw small gains, bringing in $2.29 million and $5.58 million respectively. These minor inflows stood out in an otherwise bearish market.
Adding to the drama, the Federal Reserve pumped $74.6 billion into the financial system through its Standing Repo Facility — the largest one-day liquidity injection since the COVID era. Banks used the funds to meet year-end cash demands by borrowing against U.S. Treasuries and mortgage-backed securities. While this wasn’t considered emergency action, it signaled that the Fed might be more flexible with monetary policy heading into 2026 — a positive sign for riskier assets like Bitcoin.
Institutional investors remain optimistic. Charles Schwab strategist Michael Townsend pointed to earlier regulatory uncertainty as a major factor holding Bitcoin back, suggesting that it had suppressed Bitcoin’s value by up to 50%. With clearer regulations after the U.S. elections, he believes Bitcoin could see significant upside — especially if the Fed continues easing and government debt demand weakens.
Townsend also said lower interest rates and reduced appetite for U.S. Treasuries could fuel demand for high-volatility assets like Bitcoin. However, Schwab’s own crypto trading platform is facing delays and may not launch until mid-2026, slowing their ability to fully act on their bullish outlook.
Still, not everything looks rosy. ETF data shows weak retail interest in both Bitcoin and Ethereum. Their 30-day moving averages stayed negative as 2025 ended. Technical indicators showed that Bitcoin has returned to an “Extreme Fear” zone on the Fear and Greed Index — a level that previously led to price doubling within three months.
Looking ahead to 2026, analysts see a mixed picture. CryptoQuant laid out three possible scenarios: the most likely being a range-bound market between $80,000 and $140,000 due to unpredictable ETF inflows and ongoing macro uncertainty, especially with upcoming U.S. midterm elections. A recession could pull Bitcoin down to $50,000, while a best-case scenario driven by economic easing could lift prices as high as $170,000.
Timot Lamarre from Unchained explained that investors in 2025 redirected capital into sectors like AI and gold instead of crypto. He also warned that rising U.S. debt could limit how aggressive policymakers can be ahead of the elections. But if monetary policy loosens, Lamarre believes Bitcoin will benefit from cheaper and more available dollars.
Institutional progress did continue in 2025. Vanguard finally opened its doors to crypto by allowing users to trade ETFs linked to Bitcoin, Ethereum, XRP, and Solana — a big step toward mainstream adoption. Earlier in the year, the CFTC also approved spot crypto ETFs for trading on registered futures exchanges.
Longtime Bitcoin investor Michael Terpin offered a cautious take, predicting a prolonged bear market similar to past post-halving years like 2014, 2018, and 2022. He expects Bitcoin might bottom near $60,000 in early fall before starting its next big recovery that could extend into 2028 or 2029. While there’s still a chance for a new all-time high in 2026, Terpin thinks it’s becoming less likely over time. However, he sees late 2026 as a strong accumulation window ahead of the next major supply shock post-halving.
In summary, while institutions remain hopeful about Bitcoin’s long-term future, short-term trends show weakness in ETF demand and ongoing macro challenges. But with the Fed showing signs of easing up and more platforms embracing crypto trading, conditions could improve if investor sentiment shifts in 2026.