The crypto ETF boom is about to get crowded. And not everyone is going to survive.
According to Bloomberg analyst James Seyffart, more than 100 new crypto exchange traded products are likely to launch in 2026. On the surface, that sounds bullish. But look closer and a different story emerges.
Many of these products may not make it past 2027.
Seyffart agrees with Bitwise’s forecast that a flood of crypto ETFs is coming, but he warns that demand will not keep up. With more than 126 crypto ETP applications currently sitting with the US Securities and Exchange Commission, issuers are racing to get products approved.
In his words, firms are throwing a lot of ideas at the wall and hoping something sticks.
History suggests most will not.
Last year alone, 622 ETFs shut down globally. Nearly 190 of those closures happened in the US. Morningstar data shows the average ETF that closed in 2023 had been alive for just over five years. The main reason was simple. Not enough money flowed in.
Crypto ETFs are already seeing this play out. In 2025, several products were quietly liquidated, including ARK’s active Bitcoin and Ethereum strategy ETFs. They failed to attract enough assets to justify staying open.
Why approvals will surge next year?
The coming wave is being fueled by the SEC’s new generic listing standards. These rules remove the need for case by case reviews, making it much easier for crypto ETFs to get approved. That change alone could open the floodgates in 2026.
Even before these rules kicked in, asset managers were filing for increasingly niche and speculative products, including ETFs tied to memecoins.
At the same time, some crypto ETFs have clearly worked. Spot Bitcoin ETFs have pulled in over $57 billion since launching in early 2024. Ether ETFs have added another $12.6 billion since mid 2024. Solana ETFs are also gaining traction, attracting roughly $725 million since October.
The takeaway for investors
The crypto ETF market is expanding fast, but growth does not guarantee survival. Capital will likely concentrate around a small number of liquid, well known products. The rest may fade quietly.
By 2027, investors could see a wave of closures as weaker crypto ETPs fail to gain traction. The lesson is simple. More choice does not always mean better opportunity. In crypto ETFs, demand will decide who stays and who disappears.
