The U.S. launch of spot exchange-traded funds (ETFs) linked to the two leading cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), in 2024 marked a watershed moment in the short history of digital assets.
An asset, once ignored and derided by the traditional finance industry, found support among the leading Wall Street giants like BlackRock and Franklin Templeton.
The retail traders gave a terrific reception to both the ETFs.
But come the recent crypto crash and traders are retreating from these funds, as data from the onchain analytics platform shows.
Quite often, the trading days witness millions of dollars getting drained out of crypto ETFs, whether Bitcoin or Ether funds.
Only XRP ETFs, launched in mid-November during the ongoing crash, have seen a positive net flow every day since their debut.
However, the amount is incredibly lower as compared to daily inflows of Bitcoin and Ether ETFs.
So far, Bitcoin ETFs have accumulated $57.73 billion in net inflow, Ether ETFs $12.62 billion, and XRP ETFs barely over $1 billion.
Despite the receding reception, a wave of crypto ETF issuers have lined up to submit their filings to the U.S. Securities and Exchange Commission (SEC).
Bitwise, the crypto index fund manager, predicted that more than 100 crypto ETFs will launch in the U.S. in 2026.
It underlined how the SEC's generic listing standards for crypto ETFs allow issuers to launch their offerings under a general set of rules, setting the stage for an “ETF-palooza.”
James Seyffart, senior ETF analyst at Bloomberg, noted there are at least 126 filings but warned that a lot of crypto ETFs are going to liquidate amid the space getting crowded.
Seyffart has given a 2-year deadline when he expects a wave of crypto ETF shutdowns to come.
Though the new SEC standards might have made it easier for issuers to launch crypto ETFs, it doesn't mean all the products will survive Wall Street.
This article has been published in Yahoo.com via Yahoo News.
An asset, once ignored and derided by the traditional finance industry, found support among the leading Wall Street giants like BlackRock and Franklin Templeton.
The retail traders gave a terrific reception to both the ETFs.
But come the recent crypto crash and traders are retreating from these funds, as data from the onchain analytics platform shows.
Quite often, the trading days witness millions of dollars getting drained out of crypto ETFs, whether Bitcoin or Ether funds.
Only XRP ETFs, launched in mid-November during the ongoing crash, have seen a positive net flow every day since their debut.
However, the amount is incredibly lower as compared to daily inflows of Bitcoin and Ether ETFs.
So far, Bitcoin ETFs have accumulated $57.73 billion in net inflow, Ether ETFs $12.62 billion, and XRP ETFs barely over $1 billion.
Analyst Predicts Crypto ETF Liquidations by End of 2027
Despite the receding reception, a wave of crypto ETF issuers have lined up to submit their filings to the U.S. Securities and Exchange Commission (SEC).
Bitwise, the crypto index fund manager, predicted that more than 100 crypto ETFs will launch in the U.S. in 2026.
It underlined how the SEC's generic listing standards for crypto ETFs allow issuers to launch their offerings under a general set of rules, setting the stage for an “ETF-palooza.”
James Seyffart, senior ETF analyst at Bloomberg, noted there are at least 126 filings but warned that a lot of crypto ETFs are going to liquidate amid the space getting crowded.
Seyffart has given a 2-year deadline when he expects a wave of crypto ETF shutdowns to come.
Though the new SEC standards might have made it easier for issuers to launch crypto ETFs, it doesn't mean all the products will survive Wall Street.
This article has been published in Yahoo.com via Yahoo News.
