Despite mass U.S. crypto asset ETP launches expected… "A significant number of products will be liquidated by next year"

A large number of crypto asset exchange-traded products (ETPs) are expected to be launched in the United States in 2026, but a significant portion of them could be liquidated from the market before 2027 due to lack of demand.

According to Cointelegraph, James Seyffart, an analyst at Bloomberg Intelligence, said on the 18th (local time), "It is highly likely that more than 100 crypto asset ETPs will be launched in 2026, but a significant number could be liquidated before 2027 due to lack of demand."

Seyffart agreed with asset manager Bitwise's projection of 'more than 100 crypto ETFs to be launched in 2026,' while noting that there are more than 126 ETP applications currently pending with the U.S. Securities and Exchange Commission (SEC), and criticized that "issuers are putting too many products on the market at the same time."

In fact, product liquidations due to weak demand are already common in the ETF market. Last year, 622 ETFs were liquidated worldwide, and 189 of them closed in the U.S. market alone. According to Morningstar, the average lifespan of 244 ETFs liquidated in the U.S. in 2023 was only 5.4 years. Most were due to a lack of assets under management (AUM) and low inflows.

Crypto asset ETPs are no exception. This year alone, products such as the active Bitcoin·Ethereum strategy ETF (ARKY) and the on-chain Bitcoin strategy ETF (ARKC), jointly launched by ARK Invest and 21Shares, have already entered liquidation procedures.

The market expects this trend to accelerate further in line with regulatory changes by the SEC. In September last year, the SEC introduced 'Generic Listing Standards,' simplifying the procedure so that ETP listings can proceed if requirements are met without individual review. As a result, the number of approved crypto asset ETPs is expected to surge in 2026.

Even before this regulatory change, asset managers have been launching ETFs tracking major altcoins such as Litecoin, Solana, and XRP. These products are considered extensions following the spot Bitcoin (BTC) and Ethereum (ETH) ETFs launched in 2024, and have shown relatively stable early performance.

The scale of inflows also demonstrates the growth of crypto asset ETPs. The U.S. spot Bitcoin ETF has gathered a cumulative $57.6 billion in assets since its launch in January 2024, and the spot Ethereum ETF recorded $12.6 billion in net inflows since July 2024. In addition, Solana spot ETFs launched since late October 2025 have attracted a total of $725 million in inflows.

However, Seyffart said, "Not all crypto asset ETPs can secure the same level of demand," adding, "Ultimately only the top products centered on Bitcoin and Ethereum will survive, and the rest are likely to enter a phase of restructuring."