2026 could see a wave of new crypto ETPs, according to Bitwise

Bitwise Predicts Crypto “ETF Palooza” in 2026, but Some Products Could Fail, Says Seyffart

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

The outlook 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. This eliminates the lengthy 19(b) rule 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 wrote on X, tagging Seyffart. He responded, cautioning that the rapidly expanding market is likely to face numerous closures.

“I completely agree,” Seyffart said. “We’re likely to see many crypto ETP liquidations, possibly starting at the end of 2026 but mainly through 2027. Issuers are launching a huge number of products — at least 126 filings so far.”

Seyffart added that while some consolidation may begin late in 2026, most liquidations are expected to occur in 2027 as weaker products fail to attract investor interest amid intensifying competition.