21shares Tones Down Crypto Forecasts Amid Weaker Market Conditions

Asset manager 21shares has toned down its bullish forecasts for the crypto industry in 2026, despite signs of increasing institutional adoption. The company's midyear outlook suggests that while areas such as exchange-traded funds (ETFs), stablecoin regulation, tokenization, and prediction markets have matured more quickly than prices, weaker market conditions and muted retail participation have slowed growth.

The report notes that Bitcoin's four-year market cycle remains intact, with institutional ownership having softened market drawdowns but not fundamentally altering the asset's cyclical behavior. 21shares' former co-founder Ophelia Snyder recently made a similar observation about how institutional investors have reshaped crypto markets.

Prediction markets are expected to outperform this year, with annual trading volume projected to surpass $100 billion. The report also highlights consolidation as a defining trend across the industry, with public companies holding crypto on their balance sheets beginning to diverge.

Crypto ETFs have shown resilience despite net outflows of around $3 billion this year, with holdings remaining near an all-time high. Analysts point to improving regulatory clarity in the US, citing generic listing standards that have helped convert a backlog of ETF applications into new product launches.