New regulatory shifts from the United States’ Securities and Exchange Commission may potentially lead to a drastic increase in crypto-related ETPs (Exchange-Traded Products).
ETP is an umbrella term for a group of securities that can be traded on an exchange.
One type of ETP is ETF (Exchange-Traded Funds), a type of fund that is based on the price shifts of its underlying asset. ETF is an investment instrument that allows users to be exposed to a crypto asset without having to commit to buying the asset itself.
The flood of ETPs and ETFs in 2026 is predicted by the digital asset manager company Bitwise, through an X post on 17/12/2025.
“2026 PREDICTION: More than 100 crypto-linked ETFs will launch in the U.S.”
This prediction comes from a regulatory shift last September, when the SEC approved a new rule that allows exchanges to list ETPs holding spot commodities, including crypto. Now, exchanges no longer have to wait for the SEC’s review, nor do they need to undergo a long filing process that can take up to 240 days.
“A clearer regulatory roadmap in 2026 is why we see the stage being set for ‘ETF-palooza’,” Bitwise added.
Bitwise wrapped up its post by tagging James Seyffart, Senior Research Analyst at Bloomberg. Seyffart gave an immediate reply, reminding that weak ETP products will fail in the first 18 months.
“I’m in 100% agreement,” wrote Seyffart. “I also think we're going to see a lot of liquidations in crypto ETP products. Might happen at the tail end of 2026 but likely by the end of 2027. Issuers are throwing A LOT of product at the wall—there's at least 126 filings.”
SEC’s loosening regulations create new opportunities for novel ETP crypto innovation. However, products with a weak foundation will quickly fail.
Hence, investors should conduct thorough research before investing in a new ETP project. Avoid rushing to buy a product just based on friends’ recommendations or social media hype.
Always do your own research through credible sources. Learn how to do proper research in the article What is DYOR: Definition, Why It’s Important, and How to Apply It in Cryptocurrency.
