The reopening of the U.S. government following the months-long shutdown could set the stage for a mass surge of crypto ETF approvals in 2026, according to analysts who say the Securities and Exchange Commission (SEC) is preparing for one of its busiest digital-asset cycles ever.What to KnowAnalysts expect 100+ new crypto ETFs and ETPs to launch in 2026.Bitwise CIO Matt Hougan says demand for index-based crypto ETFs is rising sharply.Heavy outflows are pressuring current crypto ETFs despite strong investor interest.Bitcoin ETFs have seen $1.1B in outflows this month, the worst November on record.Canary Capital’s new XRP ETF set the highest first-day trading volume of 2025.ETF Approval Cycle Likely to Accelerate After Shutdown EndsThe end of the U.S. government shutdown and the return to normal SEC operations will likely open the floodgates for new crypto ETF reviews and approvals in 2026, analysts say.“There is huge demand for crypto ETFs and ETPs,” Matt Hougan, chief investment officer at Bitwise, told CNBC on Wednesday.Hougan predicts the next cycle could be unprecedented:“It's going to be ETF-palooza in crypto land. I think there will be 100-plus launches. We're going to see a lot of single-asset crypto ETPs. What I’m most excited about, though, is the growth of index-based crypto ETPs.”Index ETFs, he said, appeal to investors seeking a small, diversified, passive crypto allocation, mirroring the adoption pattern seen in early-stage equity ETFs.Why Crypto ETFs Matter for Market StructureCapital flowing into crypto ETFs has been one of the major drivers of price action across Bitcoin, Ether and large-cap altcoins in 2024–2025.ETFs channel institutional and retail inflows directly into digital assets, creating steady buy pressure and reducing friction for new investors.Analysts say that expansion into index-based products could draw in another wave of traditional finance allocators who want exposure without single-asset risk.Crypto ETF Outflows Add Pressure Despite Strong DemandDespite expectations for a booming ETF landscape in 2026, existing products are suffering severe outflows as market volatility increases.XRP ETF Launches Strong, but Price FallsCanary Capital’s new XRP ETF (XRPC) launched Thursday with $58 million in first-day trading volume, the strongest ETF debut in 2025.Still, XRP prices dropped 13% over the past week, according to CoinMarketCap, reflecting broader market stress.Bitcoin ETFs Face Worst Month on RecordU.S. spot Bitcoin ETFs have seen $1.1 billion in outflows so far in November — their worst month on record, per Farside Investors.The average cost basis for Bitcoin ETF holders sits at $89,600, according to Glassnode analyst Sean Rose.Bitcoin dipped below that level on Tuesday, meaning the average ETF investor is now underwater.Senior Bloomberg ETF analyst Eric Balchunas noted that long-term whales were responsible for a majority of BTC sold in October and November, adding to outflow pressure.Despite October’s sharp market crash, he said:Bitcoin ETF investors “held surprisingly strong,” with only around $1 billion in outflows immediately following the downturn.But since then, continued price declines and worsening macro sentiment have led ETFs to hemorrhage capital throughout November.Market Outlook: 2026 Could Bring a Wave of Approvals — If Conditions StabilizeAnalysts say the combination of:normalized SEC operationsrising institutional demandexpanding product categoriesincreasing interest in index-based crypto exposure…could make 2026 the most active year ever for crypto ETF launches.However, this year’s heavy outflows and volatile market conditions illustrate the challenges ahead.Hougan remains optimistic:“ETF demand is absolutely enormous. Once the SEC pipeline clears, we’ll enter a new growth phase for crypto markets.”
Alex
Miyuki
Weiliang
Anais