🚨 Bloomberg: Many Digital Asset ETPs and ETFs Expected to Shut Down 👇🏻

Bloomberg analysts are sounding a clear warning for the crypto investment fund market: a significant number of digital asset ETPs and ETFs are likely to shut down or liquidate over the coming years as competition intensifies and market consolidation accelerates. While crypto continues to gain institutional adoption, not every crypto-linked product will be able to survive long term.

On December 18, Bloomberg ETF analyst James Seyffart said he agrees with projections from crypto asset manager Bitwise, which anticipates more than 100 new crypto ETFs launching in 2026. However, Seyffart cautioned that most of these products are unlikely to be sustainable. He expects a wave of crypto ETP liquidations to emerge, potentially starting in late 2026, with a more probable peak toward the end of 2027.

The primary issue is oversupply. There are currently more than 126 crypto ETP and ETF filings awaiting decisions from the U.S. Securities and Exchange Commission (SEC). Issuers are rapidly introducing a wide range of products—from Bitcoin and Ethereum ETFs to altcoin, index-based, and derivatives-focused funds. In such a crowded market, investor capital is expected to concentrate in a small number of large, highly liquid funds with strong branding and low fees. Smaller products will struggle to gather assets under management, ultimately leading many to close.

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