Investing.com -- Signs are surfacing that the crypto market may be bottoming, according to a senior equity analyst, who pointed to three factors supporting a sustained rally and named the stocks best positioned to benefit.

Mizuho analyst Dan Dolev said the current rally is running on less leverage than previous ones, signaling spot capital is driving gains rather than a continued short squeeze. Coin-denominated open interest fell to a one-month low after the initial rally and has not rebuilt, which Dolev said means "the continuation is being carried by spot and ETF demand rather than leveraged longs."

Retail trading activity could offer another leg higher. Dolev noted that volumes remain "three years washed-out," with firming flows into still-depressed exchange volume resembling a "late-consolidation setup." He said the key question remains whether ETF-led accumulation eventually pulls retail activity back onto exchanges, or whether ETFs continue to absorb that demand.

ETF demand has also returned strongly. Spot Bitcoin ETFs pulled in roughly $1.9 billion over the past week, the strongest weekly inflow since October 2025, with five consecutive days of inflows led by IBIT.

Among individual stock winners within Mizuho’s coverage, Robinhood was named the "cleanest way to express the inflection.” Dolev cited Robinhood’s multi-quarter record 40% spot retail share in the second quarter of 2026, along with the highest operating leverage among peers and stronger activity per funded customer.

Meanwhile, the analyst sees eToro as "the contrarian value” play. The stock lagged the rally and trades near 52-week lows at a sub-10x price-to-earnings following a post-earnings selloff, even as funded accounts grew 18% to 4.28 million. Dolev pointed to its differentiated, non-U.S., multi-asset model as a key differentiator.

Bitgo rounds out the Outperform-rated names. The company was flagged as the infrastructure and custody winner, benefiting from institutional accumulation through the ETF wrapper regardless of whether retail trading activity returns.