- Over 100 crypto exchange-traded products (ETPs) are projected to launch by 2026, but many are expected to close soon after due to low demand.
- The U.S. Securities and Exchange Commission (SEC) currently has more than 126 ETP applications under review.
- The SEC’s new generic listing standards, effective September 2025, are anticipated to increase approval rates for crypto ETPs.
- Spot Bitcoin and Ether ETFs have seen large inflows since their 2024 launches, with $57.6 billion and $12.6 billion respectively.
- Several crypto ETPs, including ARK 21Shares Bitcoin and Ethereum strategy ETFs, have already been liquidated due to insufficient investor interest.
More than 100 crypto exchange-traded products (ETPs) are expected to enter the market by 2026, but many will likely shut down quickly because of weak demand. Analyst James Seyffart agreed with a projection from Bitwise that over 100 crypto exchange-traded funds (ETFs) will launch, yet he warned numerous products may be liquidated by the end of 2027. Currently, the U.S. Securities and Exchange Commission (SEC) is reviewing over 126 crypto ETP applications, according to Seyffart’s statement on X.
Last year, 622 ETFs were closed globally, including 189 in the U.S., as reported by The Daily Upside. According to Morningstar’s January 2024 report, the 244 ETFs that closed in the U.S. in 2023 had an average lifespan of about 5.4 years. Most closures occur because of insufficient asset inflows, leading to low assets under management.
This year, several crypto ETPs have already been liquidated, notably the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) and the ARK 21Shares Active On‑Chain Bitcoin Strategy ETF (ARKC). Market analysts expect a surge in crypto ETP approvals in 2026 following the SEC’s introduction of generic listing standards. These standards no longer require case-by-case assessments for every application, facilitating faster approvals.
Even before the generic standards took effect in September 2025, asset managers filed applications for ETFs tracking speculative tokens, including a memecoin linked to Melania Trump. ETFs tracking cryptocurrencies such as Litecoin (LTC), Solana (SOL), and XRP (XRP) launched successfully this year, building on the momentum of Bitcoin (BTC) and Ether (ETH) ETFs introduced in 2024.
Spot Bitcoin ETFs in the U.S. have attracted approximately $57.6 billion in inflows since their launch in January 2024, while spot Ether ETFs have collected around $12.6 billion after starting in July 2024, data from Farside Investors and Farside Investors show. Spot Solana ETFs from firms including Bitwise, VanEck, Fidelity, 21Shares, Franklin Templeton, and Grayscale have seen about $725 million in inflows since late October, according to Farside Investors.
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