Crypto ETPs Set to Enter 'Cheesecake Factory' Era by 2026, Says Bitwise

Crypto ETPs Set to Enter 'Cheesecake Factory' Era

As per a Bitwise researcher, over 100 crypto exchange-traded products (ETPs) are expected to be launched in rapid succession in 2026. This forecast follows recent guidance from the US Securities and Exchange Commission (SEC), which has significantly sped up the processing times for new funds.

Key Takeaways:

Over 100 crypto ETPs are anticipated to launch in 2026, thanks to new SEC guidance.
The SEC's changes eliminate the lengthy approval process, allowing for quicker market entry.
Increased ETP options may trigger a bullish market, particularly for altcoins.
The number of available crypto ETPs is climbing, currently exceeding 300.

Rapid Growth on the Horizon for Crypto ETPs

During an interview on the Bankless podcast, Bitwise researcher Ryan Rasmussen expressed confidence in the accelerating pace of crypto ETP launches. “From here, we are going to accelerate forward at ridiculous speed,” he mentioned. Rasmussen predicts a variety of offerings, including spot crypto, index, equities, smart beta, and momentum products.

He based this forecast on the SEC's introduction of generic listing standards in October, which have eliminated the need for individual 19(b) approvals for qualifying crypto ETPs.

Altcoins Could See a Bullish Trend

Many industry participants perceive the forthcoming launches of more crypto ETPs that monitor altcoins as an optimistic signal for the market. Bitfinex analysts noted in August that altcoins may not experience a significant rally until ETFs providing exposure to a wider range of cryptocurrencies are approved.

Rasmussen reflected on the lengthy process since the Winklevoss twins, co-founders of Gemini, filed for the first Bitcoin ETF almost 15 years ago. He pointed out that today, there are still only a “handful” of crypto ETPs available. “It matters for investors because now they have a big menu to choose from, on how they want to allocate,” he compared it to the appeal of a restaurant depending on its menu size.

According to Fineqia International, the number of crypto ETPs on the market has recently exceeded 300.

Cryptocurrencies Bitwise’s Matt Hougan (bottom left) and Ryan Rasmussen (bottom right) were interviewed on the Bankless podcast. Source: Bankless

Analysts Agree on Positive Impact of SEC's New Rules

The SEC's general listing standards are likely to pave the way for more crypto ETPs in the near future. On September 17, Bloomberg’s ETF analyst, James Seyffart, mentioned that the policy adjustment could lead to a wave of spot crypto ETP launches.

Seoyoung Kim, a finance associate professor at Santa Clara University's Leavey School of Business, commented that while the changes may not significantly impact established categories like Bitcoin and Ether, they could benefit other crypto products greatly. “For a futures or spot ETF for digital assets that haven’t already been individually vetted, these rule changes could cut the approval time from years to months. However, the potential ETF must still meet existing requirements for formulation, listing, and trading,” Kim noted.

Conclusion

With these advancements, the landscape for cryptocurrency ETFs is evolving rapidly, promising new opportunities for investors and potentially revitalizing the altcoin market.