2026 Hundred-Index Crypto ETFs Coming! Bloomberg Warns: 2027 May See a Wave of Liquidations and Delistings

Bloomberg senior analyst warns that over 100 crypto ETFs will debut in 2026, but most may not survive past 2027 due to insufficient funding, and a “scattergun” issuance strategy could trigger a new wave of bubble bursts.

A wave of crypto ETF launches in 2026 predicted by Bloomberg, most may not last long

(Source: Bloomberg Intelligence, James Seyffart)

The cryptocurrency market is experiencing an unprecedented surge in ETF issuances, but behind this feast lurks significant bubble risks. While the market widely expects over 100 crypto ETFs to launch in 2026, Bloomberg senior ETF analyst warns that many products may be “unpopular,” ultimately facing rapid delisting and liquidation.

James Seyffart, senior ETF analyst at Bloomberg, stated on Wednesday that he agrees with digital asset management firm Bitwise’s forecast—more than a hundred crypto ETFs will debut in 2026—but also poured cold water, bluntly saying “many products simply won’t last long.”

“We will see a large number of crypto ETPs being liquidated. This wave of delistings could emerge by the end of 2026, but it’s more likely to fully explode before the end of 2027,” he said.

Seyffart pointed out that currently, over 126 ETF applications are pending review at the U.S. Securities and Exchange Commission (SEC). This number alone illustrates the market’s frenzy: after Bitcoin and Ethereum ETFs achieved initial success, asset management firms flooded into the space, trying to grab a share.

Scattergun issuance strategy, survival rates may be extremely low

James Seyffart described the current mindset of issuers as “scattergun,” “throwing all products onto the wall first to see which stick (survive).” The logic behind this strategy is: even if most products fail, just one or two successful ones can offset losses and generate hefty returns.

However, this approach could negatively impact the entire market. When investors face dozens or even hundreds of similar products, decision paralysis may lead to capital dispersion, ultimately preventing any single product from accumulating enough assets under management (AUM) to sustain operations.

More seriously, this “quantity over quality” strategy might dilute overall confidence in crypto ETFs. If many products launch in 2026 but a wave of liquidations occurs by 2027, how will investors view the market? They might see it as a realm full of speculation and instability, prompting them to stay away.

From the issuers’ perspective, this strategy also comes with high costs. Each ETF launched requires application fees, legal consulting, operational expenses, etc. If a product is eventually liquidated, those investments become worthless. Unless issuers have ample capital reserves, repeated failures could drag down the entire company’s financial health.

Historical lessons: brutal competition in the traditional ETF market

Seyffart’s warning is not alarmist; the history of the traditional ETF market offers stark lessons. According to financial media The Daily Upside, last year saw 622 ETFs delisted and liquidated, with 189 of those in the U.S. alone.

Morningstar data further shows that in 2023, 244 U.S. ETFs shut down, with an average lifespan of only 5.4 years. This means even products that pass SEC approval and go public have a high chance of being forced out within a few years.

The reasons for delisting are uniform: insufficient capital inflows. When asset size is too small and management fee income cannot cover operational costs, issuers are forced to liquidate. Typically, an ETF needs at least $50 million to $100 million in AUM to break even; below this threshold, survival is extremely limited.

It’s worth noting that the traditional ETF market has matured over decades, with investors becoming more experienced and market education more widespread. Even in this environment, ETF attrition remains high. As a new market, crypto ETFs face less investor familiarity, greater volatility, and less clear regulation, making competition even more brutal.

In fact, this cold wind has already blown into the crypto space. This year, several crypto ETPs have quietly exited, most notably two products launched by Ark Invest (famous for Cathie Wood) in partnership with 21Shares: the “ARK 21Shares Active Bitcoin & Ethereum Strategy ETF (ARKY)” and the “ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC).”

The failure of these products is particularly instructive. Ark Invest is well-known in traditional finance, and Cathie Wood is a star fund manager. Yet, even with this brand halo, the products had to shut down due to insufficient capital inflows. This shows that in the crypto ETF market, brand recognition alone does not guarantee success.

SEC easing review standards spurs listing boom, quality control may be problematic

Why do market expectations foresee a wave of crypto ETF approvals in 2026? The main reason is the SEC’s shift in attitude and simplified review process.

Industry analysts point out that with the implementation of the new “Generic Listing Standards,” regulators no longer need to conduct time-consuming “case-by-case reviews” for each application. This will significantly accelerate product launches and is expected to trigger a new wave of ETP issuance.

This policy change will have the most impact in 2026. Before the new rules take effect in September this year, asset managers are eager to submit applications, even testing regulatory boundaries with highly speculative ETFs linked to meme coins associated with First Lady Melania Trump.

However, this relaxation of standards also raises concerns. When regulators no longer strictly scrutinize each product’s quality and necessity, the market may flood with homogeneous, low-quality products. While compliant, these products may lack real investment value, ultimately causing market chaos.

From an investor protection perspective, this policy shift may not be positive. While more choices sound good, an excess of options with uneven quality makes it difficult for ordinary investors to make informed decisions. They may be swayed by marketing hype and invest in products that seem innovative but lack fundamental support.

Dominance effect is clear; small-cap ETF survival is limited

Despite the many variables ahead, the current dominance effect remains significant. Besides Bitcoin and Ethereum ETFs stabilizing in 2024, ETFs tracking Litecoin (LTC), Solana (SOL), and Ripple (XRP) have also been launched this year, achieving certain success.

According to Farside Investors data

Bitcoin spot ETF: Since its launch in January 2024, has attracted a total of $57.6 billion

Ethereum spot ETF: Since July 2024, has attracted $12.6 billion

Solana spot ETF: Since late October this year, products launched by giants like Bitwise, VanEck, Fidelity, and Grayscale have attracted $725 million

These figures clearly show that capital mainly flows into the largest market cap and most liquid cryptocurrencies. Bitcoin ETFs attract far more funds than others, reflecting investor recognition of Bitcoin’s status as “digital gold.”

However, this also means that ETFs tracking smaller, less well-known coins will likely struggle to attract sufficient capital after their 2026 launch. Even mainstream chains like Solana see far less inflow compared to Bitcoin and Ethereum. If issuers launch ETFs tracking more niche coins, success chances will be even slimmer.

A more important question is: does the market really need so many crypto ETFs? For most investors, Bitcoin and Ethereum already meet their crypto allocation needs. Other coins’ ETFs are more about catering to niche investors, but this market segment may be too small to support dozens of products.

From a product design perspective, many ETFs scheduled for 2026 may lack genuine differentiation. If multiple institutions launch tracking the same coin, competition will mainly focus on expense ratios, further squeezing profit margins and making survival harder for small issuers.

2027 will reveal the truth: who is swimming naked

The crypto ETF market is in a period of frantic expansion. 2026 may be seen as the “first year” of crypto ETFs, with many products launching, offering investors unprecedented choices. But when the tide recedes, who is swimming naked will be revealed in 2027.

For issuers, the key lies in product differentiation and long-term operational capacity. Those merely following trends with homogeneous products are likely to be among the first to be eliminated. Companies that can offer unique value, build brand recognition, and patiently cultivate the market will have a better chance to survive this competition.

For investors, the explosive growth of products in 2026 is both an opportunity and a trap. Choosing products issued by reputable institutions, tracking mainstream coins, and with reasonable fees may be wiser. Blindly chasing novelty or small-cap ETF products risks delisting and forced capital redemption.

From a macro perspective, this ETF boom reflects crypto’s gradual integration into mainstream finance. But the process won’t be smooth; the market must go through trial and error and淘汰. The wave of hundreds of launches in 2026 and potential delistings in 2027 may be necessary steps toward market maturity.