Bloomberg analysts are issuing a significant warning to the cryptocurrency investment fund market, predicting that a large number of crypto ETPs and ETFs will be forced to close or liquidate within the next few years as competition intensifies and the natural selection process begins. This assessment reflects the reality that not all products tied to digital assets can survive in the long term, even as crypto becomes increasingly institutionalized.
On December 18th, Bloomberg ETF analyst James Seyffart Chia on social media that he agrees with the forecast from cryptocurrency asset management firm Bitwise, which predicts that more than 100 new cryptocurrency ETFs could be launched in 2026. However, he also emphasized that the majority of these products are unlikely to be sustainable. According to Seyffart, the market will see a large number of crypto ETPs liquidated, possibly starting in late 2026, but more likely by the end of 2027.
