Crypto ETPs could see a flood of liquidations by 2027: Analyst
A Bloomberg analyst predicts many of the 100+ crypto ETPs launching in 2026 will face liquidation by the end of 2027 due to low demand.Summary
Bloomberg analyst James Seyffart anticipates a significant wave of liquidations for crypto Exchange-Traded Products (ETPs) by the end of 2027, although some launches might occur in late 2026. Seyffart agrees with Bitwise's projection that over 100 crypto ETFs could launch in 2026, driven by the SEC's new generic listing standards that streamline approvals. However, he warns that many of these new products will likely be shuttered due to insufficient investor demand, mirroring the trend where most failed ETFs close because they fail to attract enough assets under management. This follows a year where several crypto ETPs, like the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY), were already liquidated. Despite this potential shakeout, existing spot Bitcoin and Ether ETFs in the US have seen substantial inflows since their respective launches.
(Source：Cointelegraph)