A wave of crypto ETF (exchange-traded fund) launches in 2026 could lead to widespread liquidations later, Bloomberg ETF analyst James Seyffart has warned.
Seyffart highlighted in his comments to X on December 17 that research from crypto asset manager Bitwise projects that more than 100 crypto ETFs could be launched next year.
He also noted that 126 ETF applications are currently awaiting SEC approval, adding, “Issuers are throwing a LOT of products against the wall.”
The risk is that supply will exceed demand, making it difficult for many products to achieve sustainable levels of assets under management, especially if the crypto market remains in a slump.
“We will see a lot of liquidations in crypto ETP products,” he said. “This could happen by the end of 2026, but probably by the end of 2027.”
I agree 100% @BitwiseInvest here. I also think we will see a lot of liquidations in crypto ETP products. This could happen in late 2026, but probably in late 2027. Issuers are throwing a LOT of products against the wall – there are at least 126 signups https://t.co/eOmeUIKXFZ pic.twitter.com/UELUKUng7Y
— James Seyffart (@JSeyff) December 17, 2025
SEC general listing standards make it easier to launch new products
Seyffart’s warning and Bitwise’s 2026 ETF boom prediction follow a September decision by the U.S. Securities and Exchange Commission (SEC) to adopt generic listing standards for crypto ETFs.
This allows national stock exchanges such as the New York Stock Exchange (NYSE), Nasdaq and Cboe to list certain commodity-based ETPs (exchange traded products) linked to cryptos.
Before adopting the generic listing standards, the SEC had reviewed each crypto ETF application on a case-by-case basis. This process was slow and unpredictable, subsequently creating a bottleneck for issuers and managers looking to launch new products.
Now the new standards change the process by establishing rules-based, objective criteria. This is comparable to the number of traditional commodity ETFs listed.
Given that the new generic listing standards streamline the process, multiple issuers have applied to launch products for a range of cryptos with the aim of replicating the success of the spot BTC and spot ETH funds in the US.
The funds were expected to spark a rally in the crypto market earlier this year, but the US government shutdown had stalled momentum for the market.
Crypto ETFs could repeat the trend in the TradFi space
The warning of a crypto ETF boom and subsequent liquidations also comes after several funds in the traditional finance space failed to take off.
A total of 622 ETFs were closed last year. This included 189 funds in the US, according to a report from The Daily Upside last month. Morning star too reported in January 2024 that the 244 ETFs closed in the US in 2023 had an average age of only 5.4 years.
Many of these ETFs were closed due to their failure to attract sufficient inflows, ultimately leading to low assets under management.
There are already indications this year that the trend could make its way into the crypto market. Several crypto products have been liquidated in 2025. Among them are the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC).
Altcoin ETFs are lagging behind older Bitcoin funds
Spot Bitcoin ETFs launched in the US in early 2024 and have since seen net inflows of more than $57.7 billion. BlackRock’s IBIT has taken the lead with net cumulative inflows of more than $62.6 billion, data from Farside Investors shows.
US Spot BTC ETF Flows (Source: Farside Investors)
Spot ETH ETFs, which launched a few months later, have only generated $12.636 billion in revenue cumulative net inflow.
Spot SOL ETFs also debuted on the market earlier this year, but they have only attracted a total of $725 million in inflows.
Spot XRP ETFs are the youngest products on the market and appear to have that boxed the trend we see with altcoin products. After multi-day inflows since their debut, the spot XRP ETFs have already managed to surpass $1.1 billion in total net assets.
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