Analysts Warn of Impending Shakeout in Crypto ETP Market
Bloomberg Intelligence analyst James Seyffart predicts a wave of crypto ETP liquidations by 2027, citing oversaturation and lack of demand. With 126 filings pending SEC approval and 746 ETFs launched in 2024 alone, the market shows signs of unsustainable growth.
"We're seeing Darwinian dynamics play out," Seyffart observes, noting that while asset flows reached $1.1 trillion in 2025, fund closures accelerated to 266 in H1 2025 from 253 during the same period in 2024. VettaFi's Todd Rosenbluth echoes concerns about market fragmentation.