130 Crypto ETFs Face Potential Closure Risk Within Two Years, Analysts Warn

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According to market analysis reported by Guru Club on June 5, the cryptocurrency ETF market has rapidly expanded since the U.S. approved spot crypto funds in January 2024, with 130 new funds launched and 155 more in development. However, analysts warn that approximately one-third of these funds may shut down within two years. Investor demand remains concentrated on low-cost Bitcoin and Ethereum products from major issuers like BlackRock and Fidelity, leaving newer funds struggling to attract sufficient assets. As FactSet's global fund analysis director Elisabeth Kashner explained, when a fund closes, its assets are liquidated and distributed to investors, potentially triggering capital gains taxes.
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