A new wave of altcoin ETFs could be coming to the market in 2026, according to Bloomberg Intelligence analyst James Seyffart. In a recent discussion, Seyffart explained why many of these upcoming ETFs will appeal to traders and institutions, even though he personally will not be investing in them.
Seyffart said ETF issuers are preparing to launch a long list of altcoin funds. He mentioned assets like Injective, SEI, AXL, Aptos, SUI, BNB, NEAR, ONDO, AVAX, and even emerging networks such as Canton.
According to him, the ETF market operates like a “spaghetti cannon.” Issuers throw many products into the market and wait to see which ones gain traction. If any of these blockchains or tokens suddenly become popular, the issuer that launched the ETF first will benefit the most.
Several projects he once had never heard of, such as Solana or Chainlink, later became major players. Because of that, he says the market will always keep creating ETFs for “the long tail of assets.”
Even though he expects many altcoin ETFs to launch next year, Seyffart said he will almost certainly not invest in them himself.
He explained two main reasons:
As an analyst, he has strict rules regarding what he can own, how long he must hold it, and when he can sell. These limitations prevent him from actively trading fast-moving crypto ETFs.
Seyffart said products like 2x leveraged Bitcoin ETFs or covered call ETFs may work for certain traders, but he avoids them because they rely heavily on timing the market. Some investors made big profits on inverse or leveraged products during recent volatility, but these are not strategies he is comfortable with.
Even though there are ETFs he does not prefer personally, Seyffart said that they still serve a purpose.
He pointed to:
He said these are not products he would ever hold, but they clearly have demand. Many of them have attracted billions of dollars in assets from traders who find them useful for short-term exposure or income strategies.
If Seyffart is correct, 2026 could see the largest expansion of crypto ETFs in history. Traders may soon see regulated exposure to dozens of altcoins, not just Bitcoin, Ethereum, Solana, and XRP.
However, Seyffart’s message is clear. Just because an ETF launches does not mean every investor should buy it. Many of these products are designed for short-term traders or niche strategies.
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