Over 100 crypto exchange-traded products could potentially launch in rapid succession in 2026, following recent guidance from the US securities regulator that significantly shortened the processing times for new funds, reports a Bitwise researcher.
“We are on the verge of an extraordinary acceleration,” Bitwise researcher Ryan Rasmussen stated in an interview with the Bankless podcast on Tuesday.
“We anticipate more than 100 crypto-related ETPs to debut next year; these will include spot crypto, indices, equities, smart beta, momentum strategies, and various other options,” Rasmussen elaborated.
Rasmussen’s forecast is based on the US Securities and Exchange Commission’s (SEC) release of new general listing standards in October, which removed the necessity for separate 19(b) approvals for qualifying crypto ETPs.
The rise in crypto ETFs may initiate an altcoin season
“This is essentially a roadmap for ETP issuers like Bitwise, indicating that if an asset meets specific criteria, it can be listed as an ETP. The lengthy 240-day waiting period we once faced is no longer in effect,” he explained.
Many market participants see the launch of additional crypto ETPs that track altcoins as a positive indicator for the market.
Bitfinex analysts noted in August that a widespread, significant rally in altcoins is unlikely until ETFs that offer exposure beyond the largest cryptocurrencies are approved.
Rasmussen pointed out that it has been almost 15 years since Gemini co-founders Tyler and Cameron Winklevoss applied for the first Bitcoin ETF, yet there are still only a few “handful” of crypto ETPs available today.
“This is crucial for investors because it expands their options for asset allocation,” he remarked, comparing the excitement of a restaurant to the variety of its menu:
“Investors can feel uninspired when faced with a limited menu; it’s not a thrilling experience. But now they will have access to a menu as extensive as the cheesecake factory of ETPs.”
The number of crypto ETPs in the market has recently surpassed 300, according to Fineqia International.
Crypto analysts agree on the positive effects of the SEC’s updated rules
The new generic listing standards could facilitate a surge in crypto ETP launches soon.
On Sept. 17, Bloomberg ETF analyst James Seyffart mentioned that this policy update could pave the way for a “wave of spot crypto ETP launches.”
Related: UK regulator reviews crypto regulations for exchanges, lending, and DeFi
Seoyoung Kim, an associate professor of finance at the Leavey School of Business at Santa Clara University, recently shared with Cointelegraph that while this change may have limited effects on already “legitimized” assets like Bitcoin (BTC) and Ether (ETH), it could greatly benefit other crypto offerings.
“For futures or spot ETFs for digital assets that haven’t been thoroughly reviewed yet, these regulations could reduce approval times from years to just months. Certainly, the prospective ETF must still meet existing standards for formation, listing, and trading,” Kim explained.
Magazine: Major questions: Can Bitcoin endure a 10-year power blackout?
