Analyst warns a wave of crypto ETF shutdowns is coming

Core Insights - The U.S. launch of spot ETFs linked to Bitcoin and Ethereum in 2024 represents a significant shift in the perception of digital assets by traditional finance, gaining support from major firms like BlackRock and Franklin Templeton [1] Group 1: ETF Performance and Market Reaction - Retail traders initially welcomed the Bitcoin and Ethereum ETFs, but recent market downturns have led to significant withdrawals from these funds, with millions of dollars exiting crypto ETFs daily [2] - Bitcoin ETFs have seen a total net inflow of $57.73 billion, while Ether ETFs have accumulated $12.62 billion, and XRP ETFs have only garnered over $1 billion since their launch [3] Group 2: Future Projections and Industry Trends - Despite the current challenges, numerous crypto ETF issuers are preparing to file with the SEC, with predictions of over 100 new crypto ETFs launching in the U.S. by 2026 [4] - The SEC's generic listing standards for crypto ETFs have facilitated this influx, but analysts warn that many of these ETFs may face liquidation as the market becomes saturated [5] - A forecast suggests that a wave of crypto ETF shutdowns could occur by the end of 2027, with expectations for significant liquidations starting as early as late 2026 [6]