Bitwise Predicts 2026 Crypto “ETF Palooza,” but Some Products Could Fail, Says Seyffart
Bitwise expects 2026 to see a surge in crypto ETP launches, driven by clearer SEC rules. However, Bloomberg’s James Seyffart warned that many of these new products may fail within 18 months.
The forecast follows a September regulatory shift in which the SEC approved rules allowing exchanges to list ETPs holding spot commodities, including cryptocurrencies, without individual SEC reviews. This eliminates the lengthy 19(b) filing process, which could previously take up to 240 days.
“A clearer regulatory roadmap in 2026 is why we see the stage set for an ‘ETF palooza,’” Bitwise wrote on X, tagging Seyffart. He responded by cautioning that the fast-growing market could face a wave of closures.
“I fully agree,” Seyffart said. “We’re likely to see numerous liquidations in crypto ETPs, possibly starting at the end of 2026 but mainly throughout 2027. Issuers are flooding the market — there are at least 126 filings so far.”
While some consolidation may begin in late 2026, Seyffart noted that most liquidations are expected in 2027 as weaker products fail to attract investor interest amid intensifying competition.
