The U.S. crypto ETF (exchange-traded fund) market is approaching a turning point. Bitwise Asset Management's forecast for 2026 predicts the launch of over 100 new crypto-linked ETFs, thanks to simplified listing standards from the SEC that will take effect in October 2025.
Although forecasts indicate new all-time highs for Bitcoin, Ethereum, and Solana, Bloomberg ETF analyst James Seyffart warns that a significant selection may be inevitable, as the sector risks becoming overcrowded.
Bitwise shares 11 crypto predictions for 2026
Bitwise has made 10 predictions for 2026, involving crypto and ETF markets that investors will closely follow. According to the crypto index fund manager:
Bitcoin, Ethereum, and Solana will reach new all-time highs
Bitcoin will break the four-year cycle and set new all-time highs
Bitcoin will be less volatile than Nvidia.
ETFs will purchase over 100% of the new supply of Bitcoin, Ethereum, and Solana due to accelerated institutional demand.
Crypto stocks will outperform tech stocks.
Polymarket's open interest will reach a new all-time high, surpassing the levels of the 2024 elections.
Stablecoins will be blamed for destabilizing an emerging market's currency.
On-chain vaults will double their AUM.
Ethereum and Solana will reach new all-time highs (if the CLARITY Act is approved).
Half of the Ivy League endowment funds will invest in crypto.
More than 100 crypto-linked ETFs will be launched in the United States.
The correlation of Bitcoin with stocks will decrease.
A wave of ETF liquidations could occur in 2026, James Seyffart
The eleventh prediction has drawn particular attention among analysts. The wave of new crypto-linked ETF launches follows a significant regulatory change.
In September 2025, the SEC introduced generic listing standards for commodity-based trust shares, including crypto assets.
“[Several major exchanges] have submitted rule change proposals to the SEC to adopt generic listing standards for commodity-based trust shares. Each of the previous rule change proposals… has been subject to notification and comments. This order approves the Proposals on an accelerated basis,” the SEC document states.
This change allows ETFs to be listed without individual reviews, reducing wait times and uncertainty.
Bitwise predicts that this regulatory clarity will favor institutional adoption and new inflows into crypto ETFs by 2026.
“I completely agree with Bitwise on this point,” Seyffart said. “I also think we will see numerous liquidations of crypto ETP products. This could happen towards the end of 2026, but probably by the end of 2027. Issuers are launching A LOT of products.”
Dominance of Bitcoin ETFs and saturation of altcoins
Bloomberg data shows that there are currently 90 crypto ETPs with $153 billion in assets under management, and another 125 applications pending approval. Bitcoin leads with $125 billion spread across 60 products, followed by Ethereum with $22 billion in 25 ETFs.
Altcoins like XRP and Solana remain a niche, with 11-13 products each and $1.5-1.6 billion in assets, potentially signaling increasing saturation risks.
With the market poised to be saturated, analysts expect direct competition for investor capital. However, historical data calls for caution: about 40% of ETFs launched since 2010 have subsequently closed, often due to insufficient assets or trading volumes.
The next selection among crypto ETFs: winners, losers, and the rise of 'zombie' assets.
Seyffart's warning reflects a broader concern: rapid expansion often precedes consolidation. Crypto ETFs that fail to attract sufficient AUM, differentiate their strategies, or build strong distribution networks risk an early closure.
Products that will offer specialized exposure strategies, yield functions, or customized risk profiles could instead gain lasting positions.
Chris Matta, CEO of Liquid Collective, revisits this theme in the context of 'zombie' projects, referring to crypto assets with market capitalizations exceeding $1 billion but minimal development.
“Perhaps the failure to maintain an ETF in traditional markets will be a stronger signal and will result in greater performance dispersion between active and 'dead' crypto assets,” Matta said.
Therefore, investors approaching the world of ETFs will need to be very selective. Trading liquidity, tracking accuracy, fee structure, and the issuer's credibility will be key factors in distinguishing sustainable products from those likely to fail.
Meanwhile, Bitwise's optimistic predictions suggest that major ETFs linked to the largest assets could continue to benefit from sustained institutional inflows.
The expected wave of liquidations by the end of 2027 will likely reshape the sector, consolidating capital in the strongest products.
Although disruptive, this process could ultimately strengthen the crypto ETF market in the United States:
eliminating the weaker offerings,
clarifying choices for investors and
highlighting the most differentiated strategies.
However, one question remains: in such a crowded ETF sector, which products will survive and which will end up among the growing ranks of forgotten 'zombie' crypto assets?
