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Flood of new crypto ETPs expected in 2026, says Bitwise

Streamlined SEC approval is a key factor behind that prediction, but Bloomberg’s James Seyffart warned many of the products will struggle to survive.

Dec 18, 2025, 4:41 p.m.
Securities and Exchange Commission logo (CoinDesk)

What to know:

  • The SEC's new rules could lead to a surge in crypto ETP launches in 2026, according to Bitwise.
  • Bloomberg's James Seyffart warns that many new crypto ETPs might fail within 18 months due to market saturation.
  • The regulatory changes eliminate the lengthy 19(b) rule filing process, streamlining the listing of crypto ETPs.

Due to clearer U.S. Securities and Exchange Commission (SEC) rules, 2026 could be the year of the crypto “ETF palooza”, said digital assets manager Bitwise. But while the firm forecasts an increasing number of crypto ETP launches next year, Bloomberg's James Seyffart warns many of the weaker ones could fail within 18 months.

The Bitwise forecast follows a regulatory shift in September, when the SEC approved rules allowing exchanges to list ETPs holding spot commodities, including cryptocurrencies, without requiring individual SEC reviews. The change eliminates the need for the time-consuming 19(b) rule filing process, which can take up to 240 days.

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“A clearer regulatory roadmap in 2026 is why we see the stage being set for ‘ETF-palooza,” said Bitwise on X, tagging Seyffart. He swiftly responded, warning that the fast-growing market is likely headed toward a wave of closures.

“I'm in 100% agreement,” Seyffart said. ”I also think we're going to see a lot of liquidations in crypto ETP products. Might happen at the tail end of 2026 but likely by the end of 2027. Issuers are throwing A LOT of product at the wall — there's at least 126 filings.”

Seyffart said that while some consolidation may begin as early as late 2026, the bulk of liquidations is most likely to occur throughout 2017 as competition intensifies and weaker products fail to attract investor flows.

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