Crypto ETP Boom Set To Go Into Overdrive In 2026, Bitwise Says
Crypto's institutional on-ramp is about to hit the accelerator. Exchange-traded products are gearing up for a massive surge next year, according to a bullish forecast from asset manager Bitwise.
From Wall Street to Main Street
The floodgates are opening. Regulatory clarity—or at least, less murkiness—in major markets is paving the way for a wave of new products. Traditional finance giants, once skeptics on the sidelines, are now scrambling to build their own offerings. They’ve finally realized the fee potential is too big to ignore—a classic case of finance following the money, not the innovation.
The Infrastructure is Live
This isn't a speculative pipe dream. The plumbing is already in place. Robust custody solutions, clearer tax treatment, and established trading venues have turned a niche bet into a viable asset class. Portfolio managers can now allocate with a few clicks, bypassing the technical headaches of private keys and self-custody.
A Self-Fulfilling Prophecy?
Every new ETP launch fuels the fire. It creates fresh demand for the underlying assets, boosts overall liquidity, and legitimizes the space for the next wave of institutional investors. It’s a virtuous cycle that has the potential to dwarf the initial ETF-led inflows.
The 2026 landscape won't just be about more bitcoin and ether funds. Expect a proliferation of thematic and single-asset products targeting everything from decentralized infrastructure to niche smart contract platforms. The race for assets under management is on, and the old guard is playing catch-up. Just don’t expect them to admit they were late to the party—their marketing materials will surely say they were 'strategically patient.'
Regulatory Shift Lowers Bar
The SEC issued generic listing standards in October that remove the need for separate 19(b) approvals for qualifying crypto ETPs. That step cuts out a process some issuers had to wait through — a delay that could stretch to a 240-day clock under earlier practice.
Reports have disclosed that the number of crypto ETPs already sits above 300, based on data from Fineqia International, which shows the market is no longer limited to just a few funds.
LIVE NOW – 10 Crypto Predictions for 2026: $1M BTC, Wall Street Onchain & ETF Takeover@BitwiseInvest’s @Matt_Hougan and @RasterlyRock return with 10 big predictions for 2026.
We get into:
– The $1M BTC case and why the classic 4-year cycle might be dead. – A world where ETFs… pic.twitter.com/fgELVnu6Zu
— Bankless (@Bankless) December 16, 2025
Institutional Appetite
Market watchers say new listings make it easier for issuers. But easier access is not the same thing as strong buying. Bitfinex analysts warned in August that altcoins are unlikely to enjoy a major rally until ETFs that track assets beyond the largest coins are available and attract real money. Liquidity, investor interest, and clear use cases still matter a lot. An ETF wrapper does not fix those basic needs by itself.
Rasmussen said issuers can now plan a variety of products — spot crypto, index funds, equity-linked ETPs, smart beta strategies and momentum plays.
He compared the change to moving from a tiny menu to a much larger one, saying investors will have more choices about where to put money. He also noted it has been about 15 years since the Winklevoss twins first filed for a Bitcoin ETF, and yet only a handful of crypto ETPs are widely held today.
Many New Products, Few Big WinnersExpect a wave of filings. But expect concentration too. In the wider ETF market, most assets gather in a few large funds while many other listings see thin trading.
That pattern is likely to repeat in crypto: dozens of niche products may be launched, while a smaller group gathers most assets under management. Issuers get to plant flags quickly. Investors will sort the winners from the rest over time.
WOW. The SEC has approved Generic Listing Standards for “Commodity Based Trust Shares” aka includes crypto ETPs. This is the crypto ETP framework we’ve been waiting for. Get ready for a wave of spot crypto ETP launches in coming weeks and months. pic.twitter.com/xDKCuj41mc
— James Seyffart (@JSeyff) September 17, 2025
Market Reaction Hinges On DemandOn Sept. 17, Bloomberg ETF analyst James Seyffart said the rule change could trigger a “wave of spot crypto ETP launches.”
He added that clearer rules could lead to several similar products being rolled out around the same time, raising competition among issuers while making it harder for weaker funds to gain traction.
Featured image from Unsplash, chart from TradingView
