US government reopening may unleash crypto ETF floodgates: Analyst

The US government's ending of the shutdown and instrumentality to the mean legislative league whitethorn spark a surge successful caller crypto exchange-traded money (ETF) approvals by the Securities and Exchange Commission (SEC) successful 2026, according to marketplace analysts.

There is “huge” request for crypto ETFs and exchange-traded products (ETPs), Matt Hougan, main concern serviceman astatine concern steadfast Bitwise, told CNBC connected Wednesday. Hougan said:

“It's going to beryllium ETF-palooza successful crypto land. I deliberation determination volition beryllium 100-plus launches. We're going to spot a batch of single-asset crypto ETPs. What I'm astir excited about, though, is the maturation of index-based crypto ETPs.”

Hougan added that demand for crypto scale ETFs volition beryllium driven by investors looking for a small, passive crypto allocation. 

Crypto ETFs siphon superior from accepted fiscal markets into integer assets, helping boost prices, and immoderate analysts property the change successful crypto marketplace dynamics to superior flows from ETFs.

Related: VanEck Solana ETF goes live, Grayscale DOGE ETF expected connected Monday

Crypto ETFs bleed, placing much unit connected markets

Heavy superior outflows from crypto ETFs are exerting further downward unit connected cryptocurrency prices, contempt beardown capitalist interest.

Canary Capital’s XRP ETF (XRPC) launched connected Thursday, debuting to $58 cardinal successful first-day trading volume, making it the most palmy ETF motorboat successful 2025. 

Despite the record-high trading volume, the terms of XRP (XRP) has declined by astir 13% implicit the past week, according to CoinMarketCap.

Canary Capital’s XRP ETF (XRPC) bleeds contempt record-high trading measurement during its debut. Source: Yahoo Finance

Bitcoin (BTC) ETFs archer a akin story, with about $1.1 cardinal successful outflows truthful acold successful November, according to Farside Investors, putting the concern conveyance connected way for its worst period connected record.

The full mean outgo ground for Bitcoin ETFs is astir $89,600, a level that Bitcoin fell beneath connected Tuesday, putting the average ETF capitalist underwater, according to Sean Rose, an expert astatine crypto marketplace investigation level Glassnode.

Bitcoin ETF investors held beardown contempt October’s marketplace crash, with the ETFs seeing astir $1 cardinal successful outflows successful the period pursuing the crash, according to elder Bloomberg ETF expert Eric Balchunas.

Bitcoin ETFs grounds implicit $1.1 cardinal successful outflows implicit the past 2 weeks. Source: Farside Investors

Long-term BTC whales were responsible for the bulk of BTC sold successful October and November, Balchunas said. 

However, since his comments, the crypto marketplace has extended its decline, and ETF person continued to hemorrhage capital.

Magazine: Solana vs Ethereum ETFs, Facebook’s power connected Bitwise: Hunter Horsley