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Crypto ETF Boom Faces Liquidity Stress Test

Crypto ETF Boom Faces Liquidity Stress Test

Author:

Global Cryptocurrency

Published:

2025-12-18 19:21:02

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BTCCSquare news:

The SEC's streamlined approval process has triggered a gold rush in crypto ETFs, with Bitwise predicting over 100 launches by 2026. This explosive growth comes with hidden risks - Coinbase's dominance as custodian for 85% of Bitcoin ETFs creates a precarious concentration risk.

Market makers face operational challenges with limited hedging options for altcoins. The SEC's recent in-kind creation rule exacerbates liquidity concerns, potentially turning this growth spurt into a Darwinian selection event for crypto products.

By:

Polymarket Outperforms 85% of Crypto Platforms in User Retention, Dune Data Shows

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