According to Cointelegraph, the cryptocurrency market is poised for a significant influx of exchange-traded products (ETPs) by 2026, with over 100 launches expected. However, Bloomberg analyst James Seyffart predicts that many of them will face closure due to insufficient demand. Seyffart agrees with Bitwise's forecast of a surge in crypto ETFs but expects a wave of liquidations by the end of 2027. Currently, more than 126 ETP applications are awaiting approval from the U.S. Securities and Exchange Commission (SEC) as issuers continue to introduce a wide range of products to the market.
Last year, 622 ETFs were closed globally, including over 189 in the United States, as reported by The Daily Upside. Morningstar highlighted that in 2023, 244 ETFs in the USA ceased operations, with an average lifespan of 5.4 years. The primary reason for these closures was the inability to attract sufficient investment volumes, leading to low assets under management. It is worth noting that several crypto ETPs have already been liquidated this year, including the ARK 21Shares Active Bitcoin Ethereum Strategy ETF and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF.
Industry experts anticipate significant growth in crypto ETP approvals in 2026, driven by new overarching SEC listing standards. These standards eliminate the need for individual assessments of each application, which could expedite the approval process. Even before these standards were implemented in September, asset managers began submitting applications for ETFs linked to more speculative tokens, such as Melania Trump's meme coin. This year, there was a successful launch of ETFs tracking Litecoin, Solana, and XRP, expanding the market beyond Bitcoin and Ether ETFs introduced in 2024.
Spot Bitcoin ETFs in the USA have attracted $57.6 billion in investments since their launch in January 2024, while spot Ether ETFs have gained $12.6 billion since July 2024, according to data from Farside Investors. Additionally, spot Solana ETFs from companies like Bitwise, VanEck, Fidelity, 21Shares, Franklin Templeton, and Grayscale have accumulated $725 million since the end of October. The growing regulatory landscape and increasing interest in various crypto assets suggest a dynamic future for crypto ETPs.
