Us Government Reopening May Unleash Crypto Etf Floodgates: Analyst

2026 will likely be a busy year for crypto exchange-traded funds, which could help renew investor interest in digital asset markets.

The US government's ending of the shutdown and return to the normal legislative session may spark a surge in new crypto exchange-traded fund (ETF) approvals by the Securities and Exchange Commission (SEC) in 2026, according to market analysts.

There is “huge” demand for crypto ETFs and exchange-traded products (ETPs), Matt Hougan, chief investment officer at investment firm Bitwise, told CNBC on Wednesday.

Demand for crypto index ETFs will be driven by investors looking for a small, passive crypto allocation, Hougan said.

Crypto ETFs siphon capital from traditional financial markets into digital assets, helping boost prices, and some analysts attribute the change in crypto market dynamics to capital flows from ETFs.

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

Heavy capital outflows from crypto ETFs are exerting additional downward pressure on cryptocurrency prices, despite strong investor interest.

Canary Capital’s XRP ETF (XRPC) launched on Thursday, debuting to $58 million in first-day trading volume, making it the most successful ETF launch in 2025.

Despite the record-high trading volume, the price of XRP (XRP) has declined by about 13% over the past week, according to CoinMarketCap.

Bitcoin (BTC) ETFs tell a similar story, with about $1.1 billion in outflows so far in November, according to Farside Investors, putting the investment vehicle on track for its worst month on record.

Source: CoinTelegraph