Growing inflows into spot crypto ETFs signal steady accumulation by traditional investors, according to 21Shares Investment Strategist Adrian Fritz.

He said participation is expanding among large asset managers, including Morgan Stanley and U.S. hedge funds, reflecting a gradual shift rather than a sudden surge in demand.

According to Fritz, ETF structures make it difficult to distinguish between new and existing investors, but the overall trend points to increasing comfort with Bitcoin as an institutional asset.

He added that Bitcoin’s scale and liquidity, now comparable to large-cap equities such as Nvidia, with daily trading volumes exceeding $50 billion, make it suitable for inclusion in diversified portfolios.

ETFs further enhance accessibility through both primary and secondary markets.

Fritz outlined several catalysts that could support Bitcoin’s move higher, including easing geopolitical risks, continued ETF inflows and the potential for short squeezes driven by negative funding rates.

However, he described the current environment as a bear market experiencing a relief rally.

Key resistance lies around the 200-day moving average in the $85,000 to $90,000 range, with a stronger breakout above $95,000 needed to confirm a sustained reversal.

Even in a bullish scenario, he expects continued consolidation and fragility, though a gradual move toward $100,000 by year-end remains plausible.

Fritz expressed a more cautious outlook on altcoins, arguing that the broad, speculative rallies seen in previous cycles are unlikely to return.

Instead, he said investors are becoming more selective, focusing on projects with strong fundamentals, active ecosystems and real revenue generation.

He warned that weaker projects could see their exchange-traded products shut down as capital concentrates in higher-quality assets.

Platforms such as Hyperliquid were cited as examples of projects attracting sustained interest due to real usage.

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