The 11th Crypto Prediction from Bitwise May Not Survive—James Seyffart Warns
James Seyffart warns that Bitwise's prediction of over 100 US crypto ETFs launching by 2026 may lead to significant liquidations due to market overcrowding.Summary
Bitwise Asset Management predicts over 100 new crypto-linked ETFs will launch in the US by 2026, driven by the SEC's streamlined generic listing standards effective in October 2025. While Bitwise also forecasts new all-time highs for Bitcoin, Ethereum, and Solana, Bloomberg ETF analyst James Seyffart cautions that this rapid expansion will likely lead to a significant shakeout and liquidations among crypto ETP products, potentially by the end of 2026 or 2027.
Seyffart agrees with the prediction of many new launches but anticipates many issuers are "throwing A LOT of products at the wall." Historical data shows about 40% of ETFs launched since 2010 eventually close. The expected flood of products, especially for altcoins like XRP and Solana which already have niche market share, raises risks of saturation.
The coming shakeout will force consolidation, where only ETFs with strong differentiation, low fees, good tracking, and robust distribution will survive. This process, while disruptive, may ultimately strengthen the US crypto ETF market by removing weak offerings and clarifying choices for investors.
(Source：BeInCrypto)