Will the encryption coin ETF bubble arrive? Analyst: In 2026, hundreds of funds will be launched, and in 2027, there may be a "delisting wave."

The Crypto Assets market is experiencing an unprecedented wave of ETF issuance, but behind this feast, there may be huge bubble risks hidden. Although the market generally expects that more than 100 Crypto Assets ETFs will emerge in 2026, Bloomberg's senior ETF analyst warns that many of these products may face the fate of being delisted and liquidated at lightning speed due to “lack of interest.”

The Cost of Shooting in All Directions: More Issuance, Faster Death

Bloomberg senior ETF analyst James Seyffart pointed out on Wednesday that, while he agrees with the forecast from digital asset management firm Bitwise — that there will be over a hundred crypto assets ETFs debuting by 2026 — he also poured a bucket of cold water, stating that “many products simply won't last long.”

We will witness a large number of Crypto Assets ETPs being liquidated. This wave of delisting may emerge at the end of 2026, but it is more likely to fully erupt before the end of 2027.

He pointed out that there are currently more than 126 ETF applications pending review on the desk of the U.S. SEC.

James Seyffart describes the mentality of issuers as “shooting in all directions,” “throwing all the products against the wall first to see which one sticks (survives).”

Historical Reflection: Insufficient Capital Inflow is a Fatal Blow

This is not alarmist. Looking back at the traditional financial market, the competition for ETFs has always been exceptionally brutal. According to financial media “The Daily Upside,” a total of 622 ETFs announced delisting and liquidation last year, of which 189 were domestic ETFs in the United States. Data from Morningstar further shows that the 244 U.S. ETFs that went bankrupt in 2023 had an average lifespan of only 5.4 years.

I'm in 100% agreement with @BitwiseInvest here. I also think we're going to see a lot of liquidations in crypto ETP products. Might happen at tail end of 2026 but likely by the end of 2027. Issuers are throwing A LOT of product at the wall — there's at least 126 filings https://t.co/eOmeUIKXFZ pic.twitter.com/UELUKUng7Y

— James Seyffart (@JSeyff) December 17, 2025

The reasons for these investment products being delisted are all the same, namely “nobody is buying”. When there is insufficient capital inflow and the Assets Under Management (AUM) is too low, issuers find it difficult to sustain operational costs and ultimately have no choice but to exit the market.

In fact, this cold wind has already blown into the coin circle. This year, several crypto assets ETPs have quietly exited the stage, with the most notable being the two products launched in collaboration between “the female stock god” Cathie Wood's Ark Invest and 21Shares: “ARK 21Shares Active Bitcoin and Ethereum Strategy ETF (ARKY)” and “ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC).”

SEC relaxes review thresholds: 2026 welcomes “Crypto Assets ETF listing wave”

Why does the market expect a large number of Crypto Assets ETFs to be approved for listing in 2026? The main reason is the change in the SEC's attitude.

Industry analysis indicates that with the SEC implementing the new “Generic Listing Standards,” regulatory agencies will no longer need to conduct time-consuming “case-by-case reviews” for each application, which will significantly accelerate the product listing process and is expected to trigger a new wave of ETP issuance frenzy.

Before the new regulations come into effect this September, asset management companies have been eager to explore opportunities, even submitting applications for highly speculative ETFs linked to meme coins associated with First Lady Melania Trump, testing the boundaries of regulation.

Market Overview: Bitcoin Remains the King of Fundraising

Although the future is full of variables, the current leader effect is still significant. In addition to Bitcoin and Ethereum ETFs establishing a foothold in 2024, ETFs tracking Litecoin (LTC), Solana (SOL), and Ripple (XRP) were also launched this year, achieving good results.

According to data from Farside Investors:

• Bitcoin Spot ETF: Since its launch in January 2024, it has accumulated a total of $57.6 billion in funds;
• Ethereum Spot ETF: Since its launch in July 2024, it has accumulated $12.6 billion in investments;
• Solana spot ETF: Since the end of October this year, products launched by giants such as Bitwise, VanEck, Fidelity, and Grayscale have also attracted $725 million in funds.

The Crypto Assets ETF market is currently in a period of frenzied expansion, but when the tide goes out, who will be left exposed may become clear by 2027.

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Tags: ETF James Seyffart SEC Delisting Analysis Crypto Assets Bubble Liquidation U.S. Securities and Exchange Commission