Bloomberg’s Seyffart sees crypto ETF shakeout: ‘Throwing a lot at the wall’
Journalist
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Asset supervisor Bitwise is extraordinarily bullish on crypto ETFs, projecting that they’ll seize over 100% of the brand new provide of Bitcoin, Ethereum, and Solana.
The agency cited historic ETF demand, stating that the upcoming altcoin ETF might see comparable curiosity.
Bloomberg ETF analyst James Seyffart agreed with the outlook. However he said that almost all single altcoin ETFs might face liquidation in a deeper bear market.
“I additionally assume we’re going to see quite a lot of liquidations in crypto ETP merchandise. May occur at tail finish of 2026, however possible by the top of 2027.”
He added,
“Issuers are throwing quite a lot of product on the wall — there’s at the least 126 filings.”
Supply: Bloomberg
As of 2025, BTC, ETH, SOL, and XRP have attracted vital ETF inflows and are prone to proceed as prime crypto property.
Nonetheless, different low market-cap altcoins might battle and will set off large liquidations if their costs fall additional.
Will crypto index ETFs take over?
In line with Seyffart, index ETFs monitoring a basket of altcoins, alongside BTC, could possibly be a more practical option to achieve publicity than pursuing a single altcoin ETF route, particularly for low-market-cap property.
He added,
“One class I’m anticipating to garner quite a lot of property is Crypto index ETPs. They’ll are available in quite a lot of sizes and shapes.”
Supply: Bloomberg
Presently, there are six crypto index ETFs, and on altcoins past ETH, SOL, and XRP, one standout featured throughout all of the merchandise was Cardano [ADA].
Though such an index product makes it simpler to take a position throughout a number of crypto property, its direct affect on worth appears muted, at the least in line with current information.
For instance, ADA misplaced 56% in 2025, far more than XRP’s 36% or SOL’s 20%.
Supply: ADA vs. SOL, XRP efficiency (TradingView)
This additional reinforces Seyffart’s concern {that a} single altcoin ETF, particularly one with a decrease market capitalization, might fall tougher and result in elevated ETF liquidations.
That stated, the U.S. spot XRP ETF has attracted over $1 billion in cumulative inflows in lower than two months since its debut.
In distinction, SOL ETFs had $725 million in cumulative inflows and had been launched a couple of month earlier. This underscores a stronger institutional curiosity in XRP than in SOL.
But, on the value charts, XRP struggled to remain above $2 and dumped tougher than SOL.
In different phrases, though institutional adoption is essential, different components, corresponding to market sentiment, may affect worth motion.
Closing Ideas
- Sayffart stated that crypto index ETFs might outperform the overcrowded single altcoin ETFs market.
- XRP underperformed SOL on the value charts regardless of having greater institutional curiosity.
