Crypto ETFs Poised for Major Expansion in 2026 as Analysts Predict $40 Billion in Inflows

Massive Growth Projected for Crypto ETF Market

The cryptocurrency exchange-traded fund (ETF) market is set for explosive growth in 2026, with analysts predicting over 100 new ETF filings and billions of dollars in net inflows pouring into these investment vehicles ^[1].

Senior Bloomberg ETF analyst Eric Balchunas forecast a base case of $15 billion in capital flows for 2026, with the potential to reach as much as $40 billion if market conditions improve ^[1]. The US Federal Reserve is "probably" going to lower interest rates in 2026, which Balchunas told Cointelegraph would push net inflows toward the mid or upper limits of his estimate ^[1].

ETF Holders Demonstrate Resilience

ETF investors have become a structural price support for Bitcoin, with holders demonstrating remarkable discipline during recent market volatility ^[1]. According to Balchunas, only 4% of assets exited during a recent 35% market drawdown, while 96% of assets "hung tough" ^[1]. Some weeks even saw inflows during the downturn ^[1].

"That's a lot to stomach, and I think they really showed their mettle," Balchunas said, attributing this discipline to higher levels of financial education and long-term investment horizons among ETF holders ^[1]. He noted that long-term Bitcoin natives, also called "OGs," were responsible for much of the recent selling pressure rather than ETF investors ^[1].

Institutional Adoption Key to 2026 Growth

Balchunas identified increased crypto ETF allocation by institutional investors, pension funds, sovereign wealth funds, registered investment advisers, and endowments as one of the main developments to watch in 2026. "That's where all the real money is," he said ^[1].

Regulatory Clarity to Drive New Products

The expected surge in new ETF filings will be driven by US crypto regulations, according to Fabian Dori, chief investment officer at Sygnum Bank ^[1]. If US lawmakers pass the CLARITY Act, a comprehensive crypto market structure bill, it will "open the floodgates" for new crypto ETFs in 2026, according to both Dori and Matt Hougan, chief investment officer at investment company Bitwise ^[1].

"On the basis of the potential passing of the Clarity Act, we would expect that new filings continue to go beyond BTC and ETH," Dori said, adding that "staking yields attract very solid demand, and rule-based index or basket products may emerge as a new frontier" ^[1].

Balchunas predicted that the number of altcoins with ETFs in the US could double in 2026, opening those digital assets to flows from traditional financial markets ^[1]. These altcoin ETFs will likely be accompanied by an influx of crypto-related, income-producing ETFs or other types of crypto-related investment funds ^[1].

Assets Under Management Could Double

The total assets under management (AUM) in crypto ETFs could double to $400 billion by the end of 2026, according to a forecast shared by Bitfinex analysts ^[1].

Whale Activity in Ethereum Market

Meanwhile, Ethereum whales have been purchasing large amounts of ETH in recent days, which could signal a potential market recovery ^[2]. Current technical analysis shows Ethereum trading at $2,967.70, with a market capitalization of $358 billion ^[2]. The cryptocurrency is trading just above its EMA-20 at $2,953.40, indicating a neutral to slightly bullish short-term structure ^[2].