Analyst predicts wave of crypto ETP liquidations by 2026

While over 100 cryptocurrency exchange-traded products (ETPs) are expected to launch by 2026, a significant number of them may be liquidated due to insufficient assets under management. ETP liquidation involves converting all underlying assets to cash and returning the funds to investors. According to Cointelegraph, Bloomberg ETF analyst James Seyffart stated that 126 crypto ETPs are currently awaiting approval from the U.S. Securities and Exchange Commission (SEC). He suggested that issuers are rushing to launch products regardless of their potential for success, predicting that many of these ETPs will be liquidated by the end of 2026 or 2027. This follows the liquidation earlier this year of the BTC-ETH Strategy ETF (ARKY, ARKC), which was jointly launched by Ark Invest and 21Shares.