Due to clearer rules from the U.S. Securities and Exchange Commission (SEC), 2026 could be the year of the crypto “palooza ETF,” digital asset manager Bitwise said. But while the company plans a growing 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 change in September, when the SEC approved rules allowing exchanges to list ETPs holding spot commodities, including cryptocurrencies, without requiring individual SEC reviews. The change eliminates the need for the lengthy 19(b) rule filing process, which can take up to 240 days.
“A clearer regulatory roadmap in 2026 is why we see the stage set for ‘ETF-palooza,’” Bitwise said on X, tagging Seyffart. He responded quickly, warning that the fast-growing market is likely headed for a wave of closures.
“I agree 100 percent,” Seyffart said. “I also think we’re going to see a lot of liquidations of crypto ETP products. This could happen at the end of 2026, but probably by the end of 2027. Issuers are throwing A LOT of products at the wall – there are at least 126 deposits.”
Seyffart said that while some consolidation could begin as early as late 2026, the bulk of liquidations would likely occur throughout 2017 as competition intensifies and weaker products fail to attract investor flows.
