Key Takeaways

• Bloomberg Intelligence analyst James Seyffart warns that intensified competition could trigger widespread crypto ETP liquidations as early as 2026.

• More than 120 crypto-related ETF filings are already in the pipeline, and regulatory changes could fuel further launches.

• Technical indicators point to further downside for the wider crypto market.

A wave of closures and liquidations could hit crypto exchange-traded products (ETPs) as early as 2026, according to a Bloomberg Intelligence analyst, as issuers continue to flood the U.S. market with new crypto-linked funds amid weakening market conditions.

The warning comes as CCN analysts report technical indicators pointing to renewed downside risks for the broader cryptocurrency market.

Looming Crypto ETP Liquidations

James Seyffart, an analyst at Bloomberg Intelligence, said he expects significant liquidations among crypto ETPs over the next two years as competition intensifies and weaker products struggle to remain viable.

“I’m in 100% agreement with Bitwise here,” Seyffart commented on X.

Seyffart warned that issuers are launching products at an unsustainable pace, noting that at least 126 crypto-related ETF filings are already in the pipeline.

“Issuers are throwing a lot of product at the wall,” he added.

In further remarks, Seyffart suggested the number of launches could decline sharply if markets turn decisively lower.

“100 is a safe number assuming we don’t see a 50% drop from here,” he said. “There’s already about 130 in the market today if you include buffer and covered-call type products.”

Rising Closure Risk

Seyffart’s comments were made in response to a forecast from Bitwise Asset Management, which predicted that more than 100 crypto-linked ETFs would launch in the U.S. in 2026.

Bitwise attributed the expected surge to regulatory changes, saying the U.S. Securities and Exchange Commission (SEC) plans to publish generic crypto ETF listing standards in October 2025.

While the move would allow issuers to launch products under a common framework, historical trends suggest that rapid expansion often precedes consolidation.

According to data cited by The Daily Upside, 622 ETFs were closed globally in 2024, with the U.S. accounting for 196 of those shutdowns.

Another 179 ETF closures were recorded in the first four months of 2025 alone.

Deeper Crypto Decline

Adding to the caution, CCN analyst Valdrin Tahiri said technical signals suggest the broader crypto market may be heading for another sharp downturn.