Bloomberg Analyst Predicts Crypto ETFs Liquidation in 2026

Bloomberg analyst James Seyffart has predicted that crypto ETFs could see a lot of liquidations starting in 2026

According to Seyffart, ETF liquidations are inevitable. He says the large number of crypto ETFs expected to launch next year will make them unavoidable.

He wrote:

“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.”

Over 100 Crypto ETFs Likely to Get Approved in 2026

Seyffart shared this view in reaction to Bitwise’s prediction about the proliferation of crypto-linked ETFs next year. According to the investment firm, more than 100 crypto ETFs will launch in the US in 2026.

The firm described 2026 as an ETF Palooza. It noted that the generic listing standards published by the SEC in 2025 will open the floodgates.

It said:

“In October 2025, the SEC published generic listing standards, allowing ETF issuers to launch crypto ETFs under a general set of rules. A clearer regulatory roadmap in 2026 is why we see the stage being set for “ETF-palooza.”

Seyffart confirmed the high number of pending ETF applications, noting that there are at least 126 filings. Bitcoin alone has 21 filed exchange-traded products in the US.

Basket or Index crypto ETFs also have 15 filings, while XRP has 10. Solana and Ethereum have nine and seven, respectively.

Interestingly, there are numerous other crypto tokens with pending applications. These include Chainlink, HBAR, Litecoin, Dogecoin,  SUI, Cardano, AVAX, HYPE, and others. Even memecoins such as Pengu,   TRUMP, Bonk, and Melania also have filings.

Although not all filings will be approved under the GLS, the number of applications suggests that multiple approvals are still highly likely.

Mixed Bag for Crypto ETFs Amidst Broader Price Crash

While multiple crypto ETFs might be coming next year, the past few months have seen established ETFs struggle. Both Bitcoin and Ethereum ETFs have consecutive days of outflows.

According to Sosovalue, Bitcoin ETFs recorded $277 million in outflows on December 16, following the $357.6 million on Monday. Ethereum has also exhibited similar patterns, with more than $224 million in outflows on the first two days of the week.

By comparison, Solana and XRP ETFs have been seeing inflows. XRP ETFs recorded $19.44 million in inflows this week. Solana ETFs have experienced nine consecutive days of inflows. It dates back to December 4.

Despite the disparity in ETFs’ performance, crypto assets are collectively struggling with a massive decline across the board. Bitcoin has fallen back to $85,000 while Ether slipped below $3,000. XRP is currently trading at $1.86, and SOL is priced at $122.

The decline in crypto prices has also been accompanied by volatility. Bitcoin had earlier risen as high as $90,000 before slipping, liquidating both long and short positions in the process.

Over $500 million worth of positions have now been liquidated, according to Coinglass. Long traders are mostly affected.