Due to clearer rules from the US Securities and Exchange Commission (SEC), 2026 could be the year of the crypto “ETF palooza,” digital asset manager Bitwise said. But while the firm forecasts an increasing number of crypto ETP launches next year, Bloomberg’s James Seyffart warns that many of the weaker ones could fail within 18 months.
Bitwise’s forecast follows a regulatory change in September, when the SEC approved rules allowing exchanges to list ETPs containing spot commodities, including cryptocurrencies, without requiring individual SEC reviews. The change eliminates the need for the slow Rule 19(b) filing process, which can take up to 240 days.
“A clearer regulatory roadmap in 2026 is why we see the stage being set for ‘ETF-palooza,” Bitwise said on X, tagging Seyffart. He responded quickly, warning that the fast-growing market is likely headed toward a wave of closures.
“I agree 100%,” Seyffart said. “I also think we are going to see a lot of liquidations in ETP crypto products. It could happen in late 2026, but probably in late 2027. Issuers are throwing a LOT of products at the wall – there are at least 126 filings.”
Seyffart said that while some consolidations may begin in late 2026, the bulk of liquidations are more likely to occur throughout 2017, as competition intensifies and weaker products fail to attract investor flows.
