US government reopening may unlock a wave of crypto ETFs in 2026, analyst says

With the government back to normal operations, analysts say the SEC could approve a flurry of new crypto exchange-traded funds (ETFs) in 2026—potentially reigniting interest in digital assets.

“There’s huge demand for crypto ETFs and ETPs,” Matt Hougan, CIO at Bitwise, told CNBC on Wednesday. “It’s going to be ETF-palooza in crypto land. I think we’ll see 100-plus launches, with lots of single-asset products. What I’m most excited about is the growth of index-based crypto ETPs.”

Hougan expects index-focused funds to attract investors who want a small, passive allocation to crypto. Historically, crypto ETFs have funneled capital from traditional markets into digital assets, supporting prices. Some analysts say ETF flows have been a key driver of recent shifts in crypto market structure.

But right now, ETF outflows are weighing on prices

Despite strong interest, heavy outflows from crypto ETFs are adding pressure to the market.

Canary Capital’s XRP fund (XRPC) debuted Thursday with roughly 58 million dollars in first-day trading volume—the strongest ETF launch of 2025. Even so, XRP is down about 13% over the past week, per CoinMarketCap.

Bitcoin ETFs show similar strain. They’ve seen about 1.1 billion dollars in outflows so far in November, according to Farside Investors, putting them on pace for their worst month on record. Glassnode’s Sean Rose estimates the average cost basis for Bitcoin ETFs is around 89,600 dollars—a level BTC dipped below on Tuesday—meaning the typical ETF holder is now in the red.

Even after October’s sharp sell-off, Bitcoin ETF investors largely held on, with roughly 1 billion dollars exiting during the month that followed, per Bloomberg’s Eric Balchunas. He attributed most of the selling in October and November to long-term BTC whales. Since then, the broader crypto market has continued to slide, and ETFs have kept bleeding assets.

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