More than 100 exchange-traded crypto products are expected to hit the market in 2026, but a lot of them will soon close as a result of lack of demand, an analyst says.
Bloomberg analyst James Seyffart said on Wednesday that he agreed with a 2026 forecast from crypto asset manager Bitwise that over 100 crypto ETFs would hit the market, but said many wouldn’t last.
“We will see loads of liquidations in crypto ETP products. Could occur [the] End of 2026, but probably by end of 2027,” Seyffart said, adding that over 126 ETP applications are currently awaiting an consequence from the US Securities and Exchange Commission.
“Issuers are throwing A LOT of products on the wall.”
A complete of 622 ETFs closed last 12 months, including over 189 within the U.S., The Daily Upside noted last month. Morningstar reported in January 2024 that the 244 ETFs that closed within the US in 2023 had a median age of 5.4 years.
Source: James Seyffart
Most of those investment products were discontinued because they didn’t attract sufficient inflows, leading to low assets under management.
Several crypto ETPs have already been liquidated this 12 months, essentially the most notable being the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC).
The SEC's listing standards are intended to spur mass listings
Industry analysts expect the variety of crypto ETPs approved in 2026 to blow up under the SEC's recent generic listing standards, which now not require a case-by-case review of every application.
Even before the SEC's general listing standards took effect in September, asset managers had filed to launch ETFs tied to increasingly speculative tokens like Melania Trump's memecoin.
ETFs tracking Litecoin (LTC), Solana (SOL) and
Spot Bitcoin ETFs within the US have gathered $57.6 billion price of inflows since their launch in January 2024, while spot Ether ETFs have gathered $12.6 billion since July 2024, data from Farside Investors shows.
Meanwhile, spot Solana ETFs from Bitwise, VanEck, Fidelity, 21Shares, Franklin Templeton and Grayscale have raised $725 million because the end of October.
