Bloomberg ETF analyst James Seyffart put it very bluntly:
100+ Crypto ETFs May Be Launched in 2026
There are currently 126 ETP applications in the queue.
But the result is:
👉 A large number of products will be liquidated in 2026–2027.
Note that this is not an emotional judgment.
This is a cold conclusion based on historical patterns in the ETF industry.
The true meaning of this statement is not "encryption is failing," but rather "oversupply."
You must first clarify one concept:
👉 ETF liquidation ≠ asset failure
ETF liquidation usually indicates only three things:
1️⃣ No continuous capital inflow
2️⃣ Management scale does not reach the survival line
3️⃣ The publisher discovered: It's not worth continuing to invest in it.
This is the norm in traditional markets:
Thematic ETFs
Sector ETFs
Concept ETF
It appears in large quantities within a cycle.
Then they disappear in large numbers in the next cycle.
Encryption is now going through this process.
II. Why is the liquidation concentrated in 2026–2027? The timing is crucial.
This timing aligns perfectly with all the judgments you've seen today:
QCP:
👉 A broader value reassessment may be triggered in 2026.
TXBC:
👉 2026 is "something to watch," but not now.
BTC ETF:
👉 Now only keep defensive assets
New coin price plummets:
👉 The narrative was prematurely liquidated.
The project team stated:
👉 Not expecting "takeoff on day one"
What does this tell us?
👉 2025–2026 is the "product launch period".
2026–2027 is the "inspection period".
Once all products are allowed to be released
The market will do something very cruel, but very rational:
Only those with genuine needs will remain.
The rest, wipe them out with one strike.
3. Why is "massive distribution" a typical characteristic of the later stages of a bear market?
This is very counterintuitive, but very important.
Early stages of a bear market
Nobody dares to release the product.
Afraid no one will buy
Afraid of being scolded
The later stages of a bear market (now)
Regulatory window opened
The narrative continues
Issuer selection:
👉 "Let's reserve the seats first."
So you will see:
The number of ETFs has surged.
Highly homogeneous products
ex-BTC, indices, and themes are flying everywhere.
But the problem is:
👉 Market risk budgets are limited.
One thing will definitely happen in the end:
It's not that you're acting illegally.
It's not that nobody needs you.
IV. Why is this news the final confirmation of a "slow bear market"?
What if this is a bull market?
New ETFs are coming out
Instantly make money
Management scale expanded rapidly
No one is worried about liquidation
Now, Bloomberg analysts are saying "it will be liquidated" two years in advance. What does that mean?
👉 Even the issuers and analysts tacitly agree:
Many products are just for testing purposes, not for long-term existence.
This is an extremely obvious signal:
The market is not short of products.
What's lacking is "funds willing to pay for it long-term".
This is precisely the essence of a slow bear market.
Fifth, incorporate this "liquidation expectation" into your four-stage bear market model.
Now your model can be finished like this:
Phase 1
Liquidity has slowed, but illusions remain.
Phase Two
Leverage cleaning, whale name-calling
Phase Three
Narrative liquidation, new coin crash, concentrated funds in BTC
Phase Four (Present → Future)
👉 The product experienced explosive growth, but demand was insufficient, ultimately leading to a large-scale liquidation.
This is the true end-stage characteristic of a bear market:
On the surface:
👉 Many products, compliant, bustling with activity
In fact:
👉 Funding is extremely selective and highly concentrated.
VI. How should this message actually be "used" by ordinary participants?
I won't give you operational advice, but only three long-term effective cognitive anchors:
1️⃣ The more products a company has, the more it indicates that the market is being consumed internally rather than expanded externally.
Bull markets rely on incremental growth, while bear markets rely on involution.
2️⃣ The ETFs that survive are not necessarily the "most comprehensive," but rather the "most strategically positioned."
The reason why BTC ETFs can survive is because they are treated as macro assets;
The others will either find their location or disappear.
3️⃣ When analysts start discussing "liquidation" in advance, it means the market has stopped fantasizing about "everyone succeeding."
This is a sign of the maturity cycle.
7. Summarize all the information from today into one final conclusion.
Everything you see today is actually saying the same thing, just from a different perspective:
Whale liquidation → Wrong position
Diamond Hand Clearance → Cycle Completed
New coin price crash → Imagination cut short
BTC ETF attracts funds → Defense priority
Index ETFs highlighted → Preparing for the future
A large number of ETPs will be liquidated → the vast majority of "attempts" will not be needed.
The last sentence serves as the "cover" of your research on this bear market.
This bear market,
It's not about deciding "who will rise the most".
Instead, it's about making a decision:
"Who is qualified to be left behind?"
A large number of ETPs will be liquidated in 2026–2027.
It couldn't be an accident.
Rather, it is the inevitable result of this long, slow, and extremely rational clearing process.
And now you can understand this.
We've already stood there—
The upstream of cyclical cognition. $BTC
