Over 100 Crypto ETPs Could Launch in 2026: Bitwise
More than 100 crypto exchange-traded products could launch as soon as 2026, following a recent directive from the US securities regulator that significantly reduced the processing time for new currencies, according to a Bitwise researcher.
“We're going to accelerate forward at a ridiculous pace from here,” Bitwise analyst Ryan Rasmussen said in an interview with the Bankless Podcast on Tuesday.
“We think over 100 crypto-related ETPs will launch next year; those will be crypto, index, equities, smart beta, momentum, all kinds of things,” Rasmussen added.
Rasmussen based his prediction on the general listing requirements announced by the US Securities and Exchange Commission (SEC) in October, which will no longer require crypto ETPs to qualify for individual 19(b) certifications.
More crypto ETFs could lead to the beginning of the altcoin phase.
“It's a playbook that lets ETP issuers like Bitwise know they can list an ETP if an asset meets certain criteria. We don't have this 240-day waiting period that we all go through,” he said.
Many market participants see the launch of more crypto ETPs tracking altcoins as a big sign for the market.
Bitfinex analysts said in August that altcoins are unlikely to see a broad and excessive rally until ETFs that offer exposure to larger cryptocurrencies are approved.
Rasmussen says it's been 15 years since Gemini co-founders Tyler and Cameron Winklevoss proposed the first Bitcoin ETF, yet there are “a handful” of crypto ETPs on the market today.
“It's important to investors because now that they have a big menu, how they want to be positioned,” he said, likening how a restaurant's success often depends on the size of the menu.
You can imagine investors walking into a restaurant and having like two things on the menu, they're not going to be very happy about it, and it's not going to be a great experience, but now they go and have a menu like ETP's Cheesecake Factory.
The number of crypto ETPs on the market has recently risen above 300, according to Fineqia International.
Crypto analysts agree on the high impact of the SEC's new rules
A comprehensive listing requirements guide could result in many more crypto ETP launches in the near future.
On September 17, Bloomberg ETF analyst James Seifert said the policy change would be a positive step toward a “space wave of crypto ETP launches.”
Related: UK regulator consults on crypto regulations on exchanges, lending and fiat
Seong Kim, an associate professor of finance at the Leavey School of Business at Santa Clara University, recently told Cointelegraph that while it may not have much impact on “legal” categories such as Bitcoin (BTC) and Ether (ETH), it could bring significant benefits to other crypto products.
“For futures or digital assets that have not been separately cleared ETF, these legal changes may reduce the time allowed from years to months. Of course, the potential ETF must still comply with the pre-existing requirements for ETF formation, listing and trading,” said Kim.
Magazine: The Big Questions: Will Bitcoin Survive a 10-Year Blackout?
