Will the cryptocurrency ETF bubble arrive? Analysts: In 2026, hundreds of products will be launched, and in 2027, a "delisting wave" may occur.

The crypto assets market is迎來前所未有的 ETF issuance frenzy, but behind this盛宴, there may be巨大泡沫風險. Although the market generally expects that over 100 crypto assets ETFs will be launched by 2026, Bloomberg's senior ETF analyst warns that many of these products may face the fate of迅速下市 and清算 due to “lack of interest.”

The cost of shooting wildly: more issuance, faster death

Bloomberg senior ETF analyst James Seyffart pointed out on Wednesday that while he agrees with the prediction from digital asset management firm Bitwise — that over a hundred crypto assets ETFs will debut in 2026 — he also poured cold water on it, stating that “many products simply won’t last long.”

We will witness a large number of Crypto Assets ETP being liquidated. This wave of delisting may emerge towards the end of 2026, but it is more likely to fully explode before the end of 2027.

He pointed out that there are currently more than 126 ETF applications piled up on the desk of the U.S. Securities and Exchange Commission (SEC) awaiting review.

James Seyffart describes the mindset of issuers now as “shooting in all directions,” “first throwing all the products against the wall to see which one sticks (survives).”

Historical Lessons: Insufficient Capital Inflow is a Fatal Flaw

This is not alarmist. Looking back at the traditional financial market, the competition for ETFs has always been exceptionally brutal. According to the financial media “The Daily Upside”, a total of 622 ETFs declared liquidation last year, of which 189 were domestic ETFs in the United States. Morningstar data also shows that the 244 American ETFs that went bankrupt in 2023 had an average lifespan of only 5.4 years.

I'm in 100% agreement with @BitwiseInvest here. I also think we're going to see a lot of liquidations in crypto ETP products. Might happen at 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 https://t.co/eOmeUIKXFZ pic.twitter.com/UELUKUng7Y

— James Seyffart (@JSeyff) December 17, 2025

The reasons for these investment products being delisted are always the same: “no one is buying.” When there is insufficient capital inflow and the Assets Under Management (AUM) is too low, issuers find it difficult to sustain operating costs, and ultimately have no choice but to exit the market.

In fact, this cold wind has already blown into the coin circle. This year, several crypto assets ETPs have quietly exited, and the most notable are the two products launched by Cathie Wood's ARK Invest in collaboration with 21Shares: “ARK 21Shares Active Bitcoin and Ethereum Strategy ETF (ARKY)” and “ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC).”

SEC Eases Review Threshold: 2026 Welcomes the “Crypto Assets ETF Listing Wave”

Why does the market expect a large number of Crypto Assets ETFs to be approved for listing in 2026? The main reason lies in the change in the SEC's attitude.

Industry analysis indicates that with the SEC implementing new “Generic Listing Standards,” regulators will no longer need to conduct time-consuming “case-by-case reviews” for each application, which will significantly accelerate the product listing process and is expected to spark a new wave of ETP issuance.

Before the new regulations take effect this September, asset management companies have been eager to try, even submitting applications for highly speculative ETFs linked to meme coins associated with First Lady Melania Trump, testing the regulatory limits.

Market Overview: Bitcoin Remains the King of Capital Attraction

Despite the uncertainties in the future, the current leading effect remains significant. In addition to Bitcoin and Ethereum ETFs establishing a foothold in 2024, ETFs tracking Litecoin (LTC), Solana (SOL), and Ripple (XRP) have also been launched this year and have achieved good results.

According to data from Farside Investors:

• Bitcoin Spot ETF: Since its launch in January 2024, it has accumulated a total of $57.6 billion in funds;
• Ether Spot ETF: Since its listing in July 2024, it has accumulated a total of 12.6 billion USD;
• Solana Spot ETF: Since the end of October this year, products launched by giants such as Bitwise, VanEck, Fidelity, and Grayscale have also attracted $725 million in capital.

The Crypto Assets ETF market is currently in a frenzied expansion period, but when the tide goes out, who is swimming naked may become clear in 2027.

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Tags: ETF James Seyffart SEC delisting analysis Crypto Assets bubble liquidation U.S. Securities and Exchange Commission