Opinion: The listing of a hundred crypto ETFs raises concerns as Coinbase holds 85% of the assets

According to Cryptoslate, the U.S. SEC approved a universal listing standard for cryptocurrency ETPs last September, shortening the product launch time to 75 days. Bitwise predicts that over 100 cryptocurrency ETFs will be launched by 2026, but Bloomberg senior analyst James Seyffart warns of a significant number of liquidations.

The biggest risk lies in the highly concentrated custody: Coinbase holds the vast majority of cryptocurrency ETF assets, claiming to account for as much as 85% of the global Bitcoin ETF share, posing a single point of failure risk. Additionally, authorized participants (APs) rely on a few platforms for pricing and borrowing, making it difficult for altcoins to hedge due to a lack of derivatives depth.

ETFs for mainstream coins like Bitcoin, Ethereum, and Solana will reinforce their dominant positions, but smaller funds face pressures such as liquidity exhaustion, persistent premiums and discounts, and fee wars. Analysts predict that the first wave of liquidations will occur from late 2026 to early 2027, with high-fee, homogenized products and niche index funds with assets below $50 million being the most vulnerable. The universal standard has addressed the approval time issue but has not resolved the liquidity dilemma.