In a recent analysis, Bloomberg analyst James Seyffart has forecasted a wave of liquidations for cryptocurrency exchange-traded funds (ETFs) beginning in 2026. Seyffart argues that with an expected influx of over 100 new crypto ETFs set to launch next year, the likelihood of liquidations becomes increasingly apparent.
Seyffart stated, “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.” This prediction aligns with insights from Bitwise, which anticipates a significant expansion of crypto-linked ETFs in the upcoming year, dubbing 2026 as an “ETF Palooza.” The firm highlighted that the generic listing standards released by the SEC in 2025 would facilitate this surge.
According to Seyffart, there are currently at least 126 pending ETF applications in the United States, with Bitcoin alone having 21 filed products. Other notable crypto assets, such as XRP and Solana, also have multiple ETFs in the pipeline, indicating widespread interest across various tokens. While not all applications may receive approval under the new guidelines, the sheer volume suggests that a significant number will likely make it to market.
Despite the promising outlook for new crypto ETFs, the current performance of existing products paints a mixed picture. Established Bitcoin and Ethereum ETFs have faced substantial outflows recently. For instance, Bitcoin ETFs recorded $277 million in outflows on December 16, following a previous week of $357.6 million. In contrast, XRP and Solana ETFs have seen positive inflows, with XRP products garnering $19.44 million this week alone.
This contrasting performance comes amid a broader downturn in the cryptocurrency market, with Bitcoin”s value retreating to $85,000 and Ethereum slipping below $3,000. The overall volatility has resulted in over $500 million in liquidated positions, primarily affecting long traders.
As the landscape for crypto ETFs evolves, stakeholders in the cryptocurrency space will need to closely monitor these developments, particularly as regulatory frameworks continue to take shape and impact market dynamics.
