Surge in Crypto ETP Launches Expected in 2026 Due to Regulatory Changes, Says Bitwise
Bitwise projects a significant increase in the number of crypto exchange-traded products (ETPs) launching in 2026, driven primarily by clearer rules from the U.S. Securities and Exchange Commission (SEC). A regulatory shift in September now allows the listing of ETPs holding spot cryptocurrencies without requiring individual SEC reviews, eliminating the need for the lengthy 19(b) filing process that could take up to approximately 240 days. Bitwise describes 2026 as an "ETF-palooza" year for crypto ETPs. However, Bloomberg analyst James Seyffart warns that the market may become saturated, causing many of these new crypto ETPs to fail and potentially close within 18 months. Currently, issuers have filed at least 126 crypto ETP applications, indicating a heavy wave of product launches ahead. Bitwise suggests that consolidation and liquidations of these ETPs could begin in late 2026, with most liquidations occurring by 2027. This trend reflects evolving U.S. regulatory frameworks alongside changes in the crypto ETP market.
