Bitwise is on Crypto ETFs – but it hides a prediction trap
The US crypto ETF (exchange traded fund) market is approaching a tipping point. Bitwise Asset Management's 2026 forecast expects more than 100 new crypto-linked ETFs to launch starting in October 2025, driven by streamlined listing requirements from the SEC.
While the outlook sets new all-time highs for Bitcoin, Ethereum and Solana projects, Bloomberg ETF analyst James Seifert cautions that a significant shakeout may be imminent as the sector gets crowded.
Sponsored
Bitwise shares 11 Crypto predictions for 2026
Bitwise has developed 10 projects for 2026, covering the crypto and ETF markets that investors are closely following. As a crypto index fund manager:
Bitcoin, Ethereum and Solana Set New All-Time Highs Bitcoin Breaks Four-Year Cycle and Sets New All-Time Highs Bitcoin will be less volatile than Nvidia. As institutional demand accelerates, ETFs buy more than 100% of the new supply of Bitcoin, Ethereum and Solana. Crypto equities outperform tech stocks. Polymarket open demand sets new all-time high, surpassing 2024 polling levels. Stablecoins are blamed for disrupting emerging market currencies. Onchain vaults double in AUM. Ethereum and Solana set new all-time highs (if the CLARITY Act passes). Half of Ivy League endowments invest in crypto. More than 100 crypto-linked ETFs launch in the US. Bitcoin's Correlation with Stocks Will Fall.
ETF Liquidation Wave May Happen in 2026, James Seyffart
The eleventh prediction turned heads, especially worrying analysts. The expected launch of a crypto-linked ETF follows significant regulatory change.
In September 2025, the SEC introduced comprehensive listing requirements for commodity-based trust shares, including crypto assets.
“[Several leading exchanges] A rule change proposed by the SEC to adopt general listing criteria for product-based trust shares. Each of the above rules is subject to change… provided for notice and comment. This order approves the proposal on an expedited basis,” the SEC filing said.
This change allows EFAs to be listed without individual reviews, reducing delays and uncertainty.
Bitwise expects this regulatory transparency to lead to institutional adoption and new inflows into crypto ETFs by 2026.
Sponsored
“I'm in 100% agreement with Bitwise here,” Seifert said. “Also, I think we will see a lot of liquidity in crypto ETP products. It could happen at the tail end of 2026, but it could be at the end of 2027. Providers are throwing a lot of products at the wall.”
Bitcoin ETF dominance and Altcoin saturation
According to Bloomberg data, there are 90 existing crypto ETPs with $153 billion under management, and 125 listings pending. Bitcoin leads at $125 billion across 60 products, followed by Ethereum at $22 billion across 25 ETFs.
Altcoins such as XRP and Solana, each with 11-13 products and $1.5–1.6 billion in assets, represent increasing saturation risks.
Sponsored
As the market prepares for a dive, analysts anticipate direct competition for investor capital. However, historical trends suggest caution, with roughly 40% of ETFs eventually closing since 2010, often due to insufficient assets or trading volume.
The Coming Crypto ETF Shakeout: Winners, Losers and the Rise of ‘Zombie' Assets
Seifert's warning reflects a broader concern that rapid expansion often precedes consolidation. Crypto ETFs that fail to attract sufficient AUM, differentiate their strategies or establish strong distribution networks may face early closure.
Products that offer unique exposure strategies, income characteristics or customized risk profiles can form sustainable positions.
Liquid Collective CEO Chris Matta echoes this concern in the context of “zombie” projects, defined as crypto assets with a market cap of $1 billion or more but little development.
Sponsored
“Perhaps an ETF's failure to keep up in trad markets will be a strong signal and cause a large performance dispersion between active and dead crypto assets,” Matta said.
Therefore, investors entering the ETF space must be very selective. Transactions, tracking accuracy, payment structures and issuer integrity will be critical to distinguishing sustainable products from those that are likely to fail.
Meanwhile, Bitwise's bullish forecasts suggest that leading ETFs linked to major assets are likely to continue to benefit from institutional returns.
In the year The wave of liquidity expected by the end of 2027 will reshape the sector and strengthen capital among the strongest products.
While disruptive, the process could ultimately strengthen the US crypto ETF market:
Eliminate weak offerings, clarify options for investors, and highlight specific strategies.
The question remains: Which products will survive the crowded ETF sector and join the growing ranks of crypto's forgotten “zombie” assets?
