Bloomberg’s Seyffart sees crypto ETF shakeout: ‘Throwing a lot at the wall’

Asset manager Bitwise is extremely bullish on crypto ETFs, projecting that they’ll capture over 100% of the new supply of Bitcoin, Ethereum, and Solana.

The firm cited historical ETF demand, stating that the upcoming altcoin ETF could see similar interest. 

Bloomberg ETF analyst James Seyffart agreed with the outlook. But he said that most single altcoin ETFs may face liquidation in a deeper bear market. 

“I also think we’re going to see a lot of liquidations in crypto ETP products. Might happen at tail end of 2026, but likely by the end of 2027.”

He added,

“Issuers are throwing a lot of product at the wall — there’s at least 126 filings.”

Source: Bloomberg

As of 2025, BTC, ETH, SOL, and XRP have attracted significant ETF inflows and are likely to continue as top crypto assets.

However, other low market-cap altcoins may struggle and could trigger massive liquidations if their prices fall further. 

Will crypto index ETFs take over?

According to Seyffart, index ETFs tracking a basket of altcoins, alongside BTC, could be a more effective way to gain exposure than pursuing a single altcoin ETF route, especially for low-market-cap assets. 

He added, 

“One category I’m expecting to garner a lot of assets is Crypto index ETPs. They are going to come in a lot of shapes and sizes.”

Source: Bloomberg

Currently, there are six crypto index ETFs, and on altcoins beyond ETH, SOL, and XRP, one standout featured across all the products was Cardano [ADA]. 

Although such an index product makes it easier to invest across several crypto assets, its direct impact on price seems muted, at least according to recent data.

For example, ADA lost 56% in 2025, way more than XRP’s 36% or SOL’s 20%. 

Source: ADA vs. SOL, XRP performance (TradingView) 

This further reinforces Seyffart’s concern that a single altcoin ETF, especially one with a lower market capitalization, could fall harder and lead to increased ETF liquidations. 

That said, the U.S. spot XRP ETF has attracted over $1 billion in cumulative inflows in less than two months since its debut. 

In contrast, SOL ETFs had $725 million in cumulative inflows and were launched about a month earlier. This underscores a stronger institutional interest in XRP than in SOL.

Yet, on the price charts, XRP struggled to stay above $2 and dumped harder than SOL. 

In other words, although institutional adoption is crucial, other factors, such as market sentiment, can also influence price action. 

Final Thoughts

• Sayffart said that crypto index ETFs could outperform the overcrowded single altcoin ETFs market. 
• XRP underperformed SOL on the price charts despite having higher institutional interest.