Analysts Forecast Rapid Growth for Crypto ETPs in 2026

The crypto market may see a big rise in exchange-traded products (ETPs) next year. New guidance from the SEC may lead to many new launches that change the way investors approach the market. Analysts say this could increase innovation, improve accessibility, and affect wider crypto trends. Ryan Rasmussen from Bitwise predicts over 100 new crypto-linked ETPs, including spot crypto, indexes, equities, and smart-beta strategies.

The Importance of SEC’s New Rules

Exchange-traded products come in various forms. The difference between ETPs and ETFs is that ETPs can track a wide range of assets like crypto, commodities, or currencies, while ETFs specifically hold a collection of securities such as stocks or bonds. Simply put, all ETFs are ETPs, but not all ETPs are ETFs.

The main factor behind this potential ETP surge is the SEC’s introduction of generic listing standards in October. Before this, each crypto ETP needed individual approval under Section 19(b), which could take months or even years. Now, eligible funds can be listed without that long process.

Rasmussen compares this to going from a small menu to the “Cheesecake Factory” of ETP options. Investors will have more choices, including major coins like Bitcoin and Ether, altcoins, and new indexes. This could attract both retail and institutional investors looking for wider access to crypto.

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According to experts, this change may lead providers to offer specialized funds such as momentum or smart-beta. By removing an important regulation, the market can grow faster and reach a larger number of investors.

Potential Impact on Altcoins

The growth of crypto ETPs could do more than give investors extra choices. Analysts say it might also affect altcoins. Bitfinex strategists note that altcoins are unlikely to rally widely until products giving exposure beyond the top two cryptocurrencies become popular.

ETPs tracking alternative tokens could provide the liquidity and credibility smaller projects need to attract serious investment. This does not guarantee immediate price increases, but it may signal a slow move toward the next altcoin season. As more products appear, investors might diversify more, helping certain assets gain attention and trading volume.

This trend also mirrors the overall growth of crypto markets. Investors now have improved access to assets through direct holdings, futures, and ETPs. New SEC guidance could make it easier to launch these products, promoting competition and innovation.

Considerations for Investors

The expanded ETP market offers more options for investors, but it also brings challenges. A wider choice makes investing flexible, but it requires careful study of the assets, structure, and risks in each fund.

Seoyoung Kim of Santa Clara University notes that even if rules change to speed approvals, ETFs still have to meet standards for formation, listing, and trading. Investors should check what each ETP holds. Some focus on major cryptocurrencies, while others explore newer tokens, indexes, or themes.

New ETPs can also affect market sentiment. Institutional buying has influenced Bitcoin and Ether prices before, and crypto ETPs may signal trends in the wider market.

What Does It Mean Going Forward?

The anticipated growth of crypto ETPs in 2026 may signal a turning point for the market, providing investors with a wider array of choices and easier access to both established cryptocurrencies and emerging tokens. This expansion could allow for greater portfolio diversification, increase liquidity, and enhance credibility for altcoins, making the market more approachable for retail and institutional investors alike.