21Shares’ latest State of Crypto Mid-Year Check-In report states that cryptocurrency market has shifted from a speculative phase to an institutionally driven asset class.

Stablecoins and tokenization are emerging as the sector’s strongest long-term themes.

Crypto, Stablecoins and Tokenization

In the report published on June 24, 21Shares wrote the first half of 2026 has been defined by macroeconomic uncertainty, tighter liquidity conditions and a broad correction in digital assets.

Despite the volatility, the form argues the industry’s underlying fundamentals continue to strengthen.

Institutional adoption remains the dominant structural trend, supported by expanding ETF and ETP participation, improving regulatory clarity and growing corporate and sovereign interest in digital assets.

While stablecoins are crypto’s fastest-growing real-world use case, tokenization of traditional assets also remains a major long-term opportunity.

21Shares also points to the growing intersection between artificial intelligence and blockchain, arguing that decentralized networks could provide the infrastructure for autonomous AI agents, digital identity and machine-to-machine payments.

The firm believes these applications could become an important driver of blockchain adoption over the coming years.

BTC Price Correction Is A Major Hurdle

Bitcoin’s (CRYPTO: BTC) price correction has prevented the industry from reaching 21Shares’ projected $400 billion target for assets under management by ETFs this year.

Bitcoin is increasingly behaving like a macro asset rather than a purely speculative investment, while Ethereum (CRYPTO: ETH) continues to strengthen its role as the infrastructure layer for tokenized finance and decentralized applications.

As number of wallets holding BTC continue to grow, 21Shares’ year-end base case is a recovery toward $100,000 rather than a breakout to new all-time highs.

Bitcoin’s current cycle is unfolding differently from previous bull markets, with institutional adoption replacing retail speculation as the primary driver.

Corporate Treasury Adoption

Corporate crypto treasury adoption has slowed amid weaker market conditions and higher financing costs, leading many companies to pause expansion plans.

21Shares expects the sector to consolidate, with well-capitalized firms continuing to accumulate digital assets while weaker players struggle to raise capital or sustain their treasury strategies.

By May 2026, total global crypto ETF assets undermanagement stood around $140 billion, down around 15% year-to-date, with Bitcoin ETFs accounting for almost $110 billion.

Prediction Markets

21Shares says blockchain-based prediction markets have emerged as one of crypto’s fastest-growing applications, fueled by increasing user participation, improved liquidity and expanding real-world use cases.

The firm now expects cumulative trading volumes to comfortably exceed its earlier $100 billion forecast as the sector gains mainstream traction.

Through May 2026, the prediction markets have recorded $57.5 billion marking it over 10 times the volume of same period in prior year.

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