21Shares Downgrades Crypto Forecasts Amid Weak Market Conditions

Asset manager 21Shares has downgraded several of its 2026 crypto forecasts due to weak market conditions and slower enterprise adoption. The firm's midyear outlook suggests that while progress in ETFs, stablecoin regulation, tokenization, and prediction markets has been stronger than prices suggest, decentralized finance exploits and slow corporate adoption have held the market back.

Bitcoin's four-year market cycle remains intact despite growing institutional ownership, according to 21Shares. The firm says that institutional ownership has softened drawdowns but has not changed Bitcoin's long-established four-year cycle. Ophelia Snyder, former co-founder of 21Shares, echoed this view, saying that crypto's investor base is now more institutional and connected to the broader financial system.

The U.S. spot Bitcoin ETF holdings remain above 1.25 million BTC, near an all-time high, despite $3 billion in net outflows this year. Hyperliquid spot ETFs brought in over $150 million in net inflows within their first month of trading. Prediction markets are expected to surpass $100 billion in annual trading volume in 2026, making it one of crypto's fastest-growing sectors.