21shares trims 2026 crypto forecasts despite institutional adoption gains
21Shares lowered several bullish crypto forecasts, saying institutional adoption is still strengthening but weak prices, limited retail participation, DeFi exploits, and slower enterprise uptake have delayed earlier 2026 targets. It said market infrastructure has advanced faster than token prices, with progress in ETFs, stablecoin regulation, tokenization, and prediction markets. Bitcoin’s four-year cycle appears intact despite growing institutional ownership, with post-halving behavior still driving trading patterns. Prediction markets were highlighted as a standout area, with annual volume projected to exceed $100 billion. The report also pointed to industry consolidation, including weaker crypto treasury firms and a split in Ethereum layer-2 networks, where a few rollups dominate. Crypto ETFs remain resilient: US spot Bitcoin ETFs have seen outflows, but total holdings are still near record highs, suggesting investors are holding or accumulating. Improving US regulatory clarity is also supporting a steady pipeline of new crypto ETF launches.
