Due to clearer US Securities and Exchange Commission (SEC) rules, 2026 could be the year of the crypto “ETF palooza”, said digital assets manager Bitwise. But while the firm predicts 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.
The Bitwise forecast follows a regulatory shift in September, when the SEC approved rules that allow exchanges to list ETPs that hold spot commodities, including cryptocurrencies, without requiring individual SEC reviews. The change eliminates the need for the time-consuming 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 reacted quickly, warning that the fast-growing market is likely to face a wave of closures.
“I agree 100%,” Seyffart said. “Also, I think we’re going to see a lot of liquidations in crypto ETP products. Could happen in late 2026, but probably late 2027. Issuers are throwing a LOT of product against the wall – there are at least 126 filings.”
Seyffart said that while some consolidation may begin as early as late 2026, the bulk of liquidations are most likely to take place throughout 2017 as competition intensifies and weaker products fail to attract investor flows.
