A wave of crypto exchange-traded products expected to launch in 2026 could be followed by widespread liquidations within a year, according to Bloomberg analyst James Seyffart.
Seyffart agreed with projections that more than 100 crypto ETPs may hit the market, but cautioned that many will fail to attract sufficient investor interest.
He noted that more than 126 crypto ETP applications are currently pending decisions from the U.S. Securities and Exchange Commission. Historical data shows similar outcomes in traditional markets, where hundreds of ETFs have been shut down due to low assets under management.
Several crypto ETPs have already been liquidated, including products launched by ARK and 21Shares earlier this year. Analysts expect approval volumes to rise sharply under the SEC’s generic listing standards, which streamline the review process.
However, increased approvals do not guarantee long-term viability. Weak inflows, fragmented investor demand, and product saturation could accelerate closures, particularly for niche or speculative crypto-linked offerings entering an increasingly crowded investment landscape.
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