Many of the crypto ETP applications awaiting SEC approval will launch in 2026, but a lot of those won’t survive beyond 2027, says Bloomberg analyst James Seyffart.
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More than 100 crypto exchange-traded products are likely to hit the market in 2026, but many of them will quickly be shuttered due to a lack of demand, an analyst says.
Bloomberg analyst James Seyffart said on Wednesday that he with a 2026 prediction from crypto asset manager Bitwise that would launch, but said many wouldn’t last.
“We’re going to see a lot of liquidations in crypto ETP products. Might happen at [the] tail end of 2026 but likely by the end of 2027,” Seyffart said, adding that over 126 ETP applications are currently awaiting an outcome from the US Securities and Exchange Commission.
“Issuers are throwing A LOT of product at the wall.”
Last year, a total of 622 ETFs closed down, including over 189 in the US, The Daily Upside last month. Morningstar in January 2024 that the 244 ETFs that closed in the US in 2023 had an average age of 5.4 years.
Most of these investment products shut down because they failed to attract resulting in low assets under management.
Several crypto ETPs have already been liquidated this year, the most noteworthy were the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) and ARK 21Shares Active On‑Chain Bitcoin Strategy ETF (ARKC).
Industry analysts expect an explosion in the number of crypto ETPs approved in 2026 under the SEC’s new which no longer require that each application be assessed on a case-by-case basis.
Even before the SEC’s generic listing standards came into effect in September, had filed to launch ETFs tied to increasingly speculative tokens, such as .
ETFs tracking Litecoin (), Solana (), and XRP () launched with relative success this year, expanding from the Bitcoin () and Ether () ETFs that launched in 2024.
Related:
Spot Bitcoin ETFs in the US have accumulated worth of inflows since launching in January 2024, while spot Ether ETFs have amassed since July 2024, Farside Investors data shows.
Meanwhile, spot Solana ETFs from Bitwise, VanEck, Fidelity, 21Shares, Franklin Templeton, and Grayscale have seen since late October.
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