Analysts Expect 2026 To Be a Breakout Year for Digital Asset Funds
The reopening of the United States government and the return of normal legislative activity may set the stage for a major expansion of crypto exchange-traded funds in 2026, according to industry analysts. Many expect that once the political gridlock lifts, the Securities and Exchange Commission (SEC) could accelerate its review of new crypto ETF applications.
Matt Hougan, chief investment officer at Bitwise, said growing institutional interest will push the market toward a significant ETF expansion. Speaking in a recent interview, he noted: “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.”
Hougan explained that investors increasingly want small, diversified, passive allocations to digital assets, creating strong demand for index-focused products.
Analysts believe the renewed legislative environment could remove delays that previously slowed crypto ETF decisions.
Rising Outflows Add Pressure to Crypto Markets
While long-term demand remains strong, the short-term picture shows stress. Heavy outflows from crypto ETFs have contributed to downward price pressure across major digital assets.
Canary Capital’s newly launched XRP ETF (XRPC) posted an impressive $58 million in first-day trading volume, the strongest ETF debut of 2025. However, XRP prices have fallen roughly 13% over the past week, highlighting the disconnect between trading activity and market performance.
Bitcoin ETFs are experiencing similar challenges. According to market data, more than $1.1 billion has exited Bitcoin ETFs in November, placing the sector on pace for its worst month on record. Analysts at Glassnode estimate that the average cost basis for Bitcoin ETF investors is around $89,600, a level Bitcoin dipped below this week — meaning many holders are now in the red.
Senior ETF analysts also observed that long-term Bitcoin whales were responsible for most of the selling in October and November, adding further pressure to the market.
Despite strong long-term outlooks, ETF-driven outflows continue to weigh on digital assets as the year closes.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.