A flood of 100 new crypto ETFs is expected in 2026, but the forecast is bleak.

Bitwise and Bloomberg predict the debut of more than one hundred crypto funds by 2026, although market saturation could trigger widespread liquidations by 2027.

The US financial ecosystem is on the cusp of a radical transformation in its digital investment product offerings. According to joint projections from asset manager Bitwise and Bloomberg intelligence analyst James Seyffart, the market is poised to receive more than 100 new cryptocurrency-linked exchange-traded funds (ETFs) by 2026. 

This phenomenon, dubbed by some experts as an "ETF-palooza," is a response to aggressive regulatory changes that have eliminated historical barriers for issuers. However, behind this apparent surge in availability lies a critical warning about the sustainability of these products. 

Analysts suggest that supply will far exceed actual investor demand, creating a fiercely competitive environment where many of these new financial vehicles will fail to survive beyond 2027. According to experts, the industry will then face a paradox: the ease of launching products will contrast sharply with the extreme difficulty of raising the necessary capital to ensure their long-term operational viability.

From Bitcoin to memecoins: the crypto fund boom is underway

The main catalyst for this imminent expansion of the crypto ETF market dates back to October of this year, when the U.S. Securities and Exchange Commission (SEC) published generic listing standards for exchange-traded funds linked to crypto assets. This regulatory change represents a structural shift in the rules of the game, allowing issuers to operate under a standardized framework instead of undergoing individualized and cumbersome approval processes for each fund. 

The SEC's elimination of this bureaucratic friction has incentivized asset managers to file massive applications, with More than 126 ETPs are currently awaiting a decisionThe new regulations promise to reduce approval times and mitigate legal uncertainty, facilitating the market entry of diversified strategies that go far beyond the dominant cryptocurrencies.

This openness has fostered an institutional appetite for exploring assets beyond Bitcoin and Ethereum. Following the success of spot funds for these two leading cryptocurrencies in 2024, the market has begun to validate products based on Solana, XRP, and Litecoin, and there is even speculation about the arrival of memecoin ETFs. 

Bitwise's vision point The market is expected to evolve from single-asset products toward thematic offerings, coin baskets, and performance-oriented strategies. Institutional investors, such as pension funds and wealth managers, are driving this trend, seeking regulated exposure to digital assets without the operational challenges of direct custody or the regulatory compliance involved in holding tokens in private wallets.

Consolidation is imminent: experts anticipate the end of weak ETFs in 2027

Despite the optimism generated by financial innovation, the operational reality of exchange-traded funds imposes a more somber outlook for most new entrants. 

Bloomberg's James Seyffart warns that issuers are indiscriminately launching products onto the market to see which one gains traction, a strategy that will inevitably lead to a high financial mortality rate. 

Recent history supports this caution, as 622 ETFs closed globally last year alone, with 189 of them occurring in the United States. Morningstar data reveals that the average lifespan of funds closed in 2023 was just five and a half years, the main reason being their inability to attract sufficient assets under management to justify operating costs and generate liquidity.

On the other hand, the crypto market has already witnessed notable casualties in this sector, with several cryptocurrency funds being liquidated after failing to generate the necessary commercial interest. 

Although spot Bitcoin ETFs have accumulated historical entries With markets exceeding $57.000 billion and Ethereum's market capitalization surpassing $12.000 billion, demand is neither infinite nor uniform. The more niche or speculative products launched under the new generic standards face a high risk of becoming irrelevant. 

Seyffart anticipates that liquidations will begin to be noticeable towards the end of 2026 and will intensify during 2027, at which point the market will force consolidation, eliminating those vehicles that do not offer a clear value proposition or that arrive late to an already crowded party.