Last year saw 622 ETF closures globally, including 189 in the United States, according to The Daily Upside data.
Crypto News
Exchange-traded products tracking digital assets will flood markets next year, but many won't survive beyond 2027 due to insufficient investor demand, according to Bloomberg analyst James Seyffart.
He agreed with Bitwise predictions that over 100 crypto ETFs will launch in 2026. However, he warned that liquidations will likely occur by late 2026 or throughout 2027 as issuers throw products at the wall.
More than 126 ETP applications currently await Securities and Exchange Commission decisions. Last year saw 622 ETF closures globally, including 189 in the United States, according to The Daily Upside data.
Morningstar reported that 244 ETFs closed in 2023 with an average age of 5.4 years. Most shutdowns result from inadequate inflows causing low assets under management.
Several crypto ETPs already liquidated this year, notably ARK 21Shares Active Bitcoin Ethereum Strategy ETF and ARK 21Shares Active On-Chain Bitcoin Strategy ETF. Industry watchers expect acceleration under the new SEC generic listing standards implemented in September.
Spot Bitcoin ETFs have accumulated $57.6 billion in inflows since their January 2024 launch, while spot Ethereum ETFs have gathered $12.6 billion since July 2024. Spot Solana ETFs from Bitwise, VanEck, Fidelity, 21Shares, Franklin Templeton and Grayscale have attracted $725 million since late October.
Asset managers filed applications for increasingly speculative tokens even before streamlined approval processes. Litecoin, Solana and XRP ETFs launched with relative success this year, expanding beyond Bitcoin and Ethereum products from 2024.
Generic listing standards eliminated case-by-case assessments, enabling rapid approvals. However, the flood of new products will test market appetite for diverse cryptocurrency exposure through traditional investment vehicles.
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