Over 100 Crypto ETPs Launching Soon but Many Won’t Survive
The post Over 100 Crypto ETPs Launching Soon but Many Won’t Survive appeared on BitcoinEthereumNews.com.
Over 100 crypto ETPs expected to launch in 2026, with 126+ applications pending SEC approval. Bloomberg analyst predicts mass liquidations by end of 2027 due to insufficient investor demand. Next year the cryptocurrency investment environment is set to undergo a big change. Projections are showing that there will be more than 100 new exchange-traded products launched. Nevertheless, a few voices in the industry have expressed their concern that a large number of these products will be unable to continue their activity after 2027 because of a lack of investors and low asset accumulation. Market Saturation Threatens New Products According to James Seyffart of Bloomberg, a considerable amount of crypto ETP liquidations will take place towards the end of 2026 or during 2027, despite the expected wave of launches. Right now, there are over 126 filings that are waiting for a green light from the SEC, thus resulting in a heavily saturated market situation in which the issuers are simultaneously experimenting with multiple products. Product sustainability concerns are backed up by historical trends, as 622 ETFs closed worldwide last year, out of which 189 closed just in America. The average lifetime of American ETFs, which are set to close in 2023, is 5.4 years, as per the research done by Morningstar. The main reasons for the failures are a lack of sufficient inflows and low assets under management, thus making it impossible to be profitable. The regulatory environment underwent a significant change when the SEC put in place generic listing standards in September, thus doing away with case-by-case application reviews. With this alteration, approvals are quickened; however, it also makes it possible for more and more speculative products to be introduced to the market, among which there are ETFs related to memecoins such as Melania Trump’s token. Different crypto investment vehicles…
