Digital asset management firm Bitwise says 2026 could be the year of the cryptocurrency “ETF palooza” due to clearer rules from the U.S. Securities and Exchange Commission (SEC). However, while the company predicts that the number of crypto ETP launches will increase next year, Bloomberg’s James Seyffart warned that many weaker ETPs may fail within 18 months.
Bitwise’s prediction follows a regulatory shift in September, when the SEC approved rules that would allow exchanges to list ETPs holding spot commodities, including cryptocurrencies, without requiring separate SEC review. This change eliminates the time-consuming Rule 19(b) filing process, which can take up to 240 days.
“A clearer regulatory roadmap in 2026 is why we see the stage for ‘ETF-palooza’ being set,” Bitwise said, marking Seyffart with an X. He responded quickly, warning that the fast-growing market could be facing a wave of closures.
“I agree 100 percent,” Seyffart said. “I also think we’re going to see a lot of liquidation of cryptocurrency ETP products. It could happen by the end of 2026, but it’s likely to happen by the end of 2027. Issuers are throwing out a lot of products — at least 126 applications.”
Seyffart said that while some consolidation could begin as early as late 2026, the bulk of the liquidation is most likely to occur in 2017 as competition intensifies and weaker products fail to attract investor flows.
