Asset manager cites institutional strength but notes infrastructure outpacing price growth
Asset manager 21shares has scaled back several of its bullish forecasts for the crypto industry this year, saying institutional adoption continues to strengthen even as weak market conditions and muted retail participation have slowed the pace of growth.
The midyear outlook, released in June 2026, reflects a recalibration across the sector. “After peaking at around $126,000 in October 2025, Bitcoin pulled back sharply and has continued to trade in line with prior post-halving patterns,” 21shares analysts wrote. Bitcoin’s four-year market cycle remains intact despite increased institutional ownership, which has softened but not eliminated market drawdowns.
The pullback has masked underlying institutional resilience. US spot Bitcoin ETF holdings stand near all-time highs at 1.25 million BTC, even as the products have suffered $3 billion in net outflows this year. “Investors are holding through volatility or quietly building strategic positions, even with Bitcoin trading well below its highs,” the analysts noted.
Weak crypto prices, major DeFi exploits, and slower-than-expected enterprise adoption have pushed several 2026 targets out of reach. Consolidation is occurring across the industry, with smaller treasury players and layer-2 networks struggling. Despite these headwinds, prediction markets are outperforming expectations as a growth area, with 21shares projecting $100 billion in annual trading volume for the category in 2026.
Hyperliquid, a digital asset, has emerged as a standout performer in the ETF space. “Hyperliquid stands out. US spot ETFs tracking the asset attracted over $150 million in net inflows in under a month, evidence that traditional capital continues to flow toward digital assets,” 21shares analysts said. The rapid inflow underscores appetite for alternative crypto exposure beyond Bitcoin and Ether, a trend accelerated by SEC generic listing standards that have enabled faster product launches.
Ophelia Snyder, the former 21shares co-founder who departed when FalconX acquired the company in 2025, has observed the shift firsthand. “The investor base is larger, more institutional, and more connected to the broader financial system,” Snyder said. That structural change distinguishes the current cycle from prior booms, even if price action has disappointed.
The 21shares assessment reflects a broader industry pattern: infrastructure and adoption metrics are advancing faster than price recovery. While retail participation remains muted and several growth targets have been deferred, the institutional scaffolding supporting crypto markets has deepened. Whether that foundation can sustain growth through the remainder of 2026 will test the durability of the current cycle.
