New crypto ETP launches expected to spike in 2026, says Bitwise

Bitwise Forecasts 2026 Crypto “ETF Palooza,” but Risk of Failures Looms, Says Seyffart

Digital asset manager Bitwise expects 2026 to bring a wave of new crypto ETP launches, thanks to streamlined SEC rules. However, Bloomberg’s James Seyffart warned that many of these products could fail within 18 months.

The prediction comes after a September regulatory shift, when the SEC approved rules allowing exchanges to list ETPs holding spot commodities, including cryptocurrencies, without requiring individual reviews. This eliminates the lengthy 19(b) filing process, which could previously take up to 240 days.

“A clearer regulatory roadmap in 2026 is why we see the stage set for an ‘ETF palooza,’” Bitwise said on X, tagging Seyffart. He responded, cautioning that the fast-growing market is likely to experience numerous closures.

“I completely agree,” Seyffart said. “We’re likely to see a wave of crypto ETP liquidations, possibly starting at the end of 2026 but mainly throughout 2027. Issuers are flooding the market — at least 126 filings so far.”

While some consolidation may begin in late 2026, Seyffart noted that most closures are expected in 2027 as competition heats up and weaker products fail to attract investor interest.