A significant rise in cryptocurrency exchange-traded products (ETPs) can be expected in 2026, as per Bitwise’s forecast. A major factor contributing to this prediction includes the new rules brought out by the Securities and Exchange Commission (SEC) that remove the need to file 19(b) rules.
Key Points:
- Streamlined SEC Approval Process: The new rules issued by the SEC make it possible for exchanges to list ETPs that hold spot commodities such as cryptocurrencies without the need for approval by the SEC.
- Rise in the Number of ETPs Launched on Bitwise:
The company predicts an increase in the number of crypto ETPs that will be launched in 2026 due to the clear
- Warning of Failures: According to Bloomberg's James Seyffart, several new crypto ETPs could potentially fail in 18 months because of market saturation, in which there are currently a least 126 pending filings.
- Consolidation Expected: Seyffart believes that most of the liquidations will occur in 2027 as the level of competitiveness escalates and poor products do not attract funds.
Market Impact:
It could lead to greater market participation and increased investment possibilities arising from the expected entry of new crypto ETPs into the market. On the other hand, possibilities of failure and consolidation could lead to market volatility.
