Bloomberg analyst James Seyffart believes that there may be over 100 cryptocurrency exchange-traded products (ETPs) listed in 2026, but some of them will likely be delisted quickly due to insufficient market demand.
Seyffart said on social media platform X on Wednesday that he agrees with the prediction by cryptocurrency asset management firm Bitwise that there will be over 100 ETFs tracking cryptocurrency price performance in the US market in 2026. However, he also pointed out that many of these products may not last long.
Seyffart wrote: "I still believe that there will be a large number of liquidations of cryptocurrency ETP products, likely occurring by the end of 2026, but more probably before the end of 2027. Issuers are pushing a 'large' number of products to the market - currently, there are at least 126 applications."
Source: James Seyffart
(The Daily Upside) reported last month that a total of 622 ETFs were closed last year, with over 189 occurring in the U.S. market. Morningstar noted in a report in January 2024 that 244 ETFs were closed in 2023, with an average lifespan of 5.4 years. Factors such as insufficient asset management scale, excessive fees, poor performance, and a historically short track record are often highly correlated with the likelihood of ETF closures.
This year, several cryptocurrency ETPs have been liquidated, among which the most notable are the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC).
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