Many Crypto ETFs Could Shut Shortly After Launching: Analyst
Over 100 crypto exchange-traded products (ETPs) are expected to launch in 2026, driven by the US Securities and Exchange Commission’s (SEC) new generic listing standards that streamline approval. However, many of these products are predicted to fail quickly due to low investor demand and insufficient inflows, mirroring broader trends in the ETF market where hundreds of funds close each year. Currently, over 126 crypto ETP applications await SEC decisions, with asset managers introducing products linked to increasingly speculative cryptocurrencies. Recent launches include ETFs for Litecoin, Solana, and XRP, expanding beyond Bitcoin and Ether. Since January 2024, spot Bitcoin ETFs have accumulated $57.6 billion in inflows, with Ether ETFs reaching $12.6 billion since July, and spot Solana ETFs attracting $725 million since October. Despite the expected surge in offerings, high closure rates are anticipated as issuers experiment and products struggle to achieve sustainable assets under management.
