Bitwise Predicts 2026 Crypto “ETF Palooza,” but Many Products Could Fail, Warns Seyffart
Digital asset manager Bitwise forecasts a surge of crypto ETP launches in 2026, driven by clearer SEC rules. However, Bloomberg’s James Seyffart cautions that many of these products could fail within 18 months.
The prediction follows a regulatory shift in September, when the SEC approved rules allowing exchanges to list ETPs holding spot commodities, including cryptocurrencies, without individual SEC reviews. This removes the previously time-consuming 19(b) rule filing process, which could take up to 240 days.
“A clearer regulatory roadmap in 2026 is why we see the stage set for an ‘ETF palooza,’” Bitwise wrote on X, tagging Seyffart. He responded by warning that the rapid expansion could lead to widespread closures.
“I fully agree,” Seyffart said. “We’re likely to see a wave of liquidations in crypto ETPs, possibly starting at the end of 2026 but mainly through 2027. Issuers are launching a large number of products — there are at least 126 filings so far.”
While some consolidation may begin in late 2026, Seyffart noted that most liquidations are expected in 2027 as competition intensifies and weaker products fail to attract investor interest.
