How Many Crypto ETFs Is Too Many? Some Industry Execs Say We’ve Reached Our Limit

President of The ETF Store says he expects more closures than launches in the segment going forward

article-image

Blockworks exclusive art by axel rangel

share
  • Invesco, BlackRock and Fidelity crypto ETFs have a combined $20 million in assets under management as Schwab gets set to launch a similar product
  • Valkyrie CEO says larger number of products will see greater demand after regulatory clarity

Crypto-focused ETFs are getting crowded.

Charles Schwab’s pending entry to the digital asset ETF arena, announced last week, has industry participants parsing the number of traditional finance heavy hitters that have rolled out such products — perhaps dampening the prospects of future competition.

Schwab’s launch this week of its Crypto Thematic ETF (STCE) — which undercuts the expense ratios of similar funds by BlackRock, Fidelity and Invesco —  is likely to dissuade other would-be first-time issuers, according to Nate Geraci, president of The ETF Store.

“This segment of ETFs is already oversaturated,” Geraci told Blockworks. “With the large number of products swamping the market over the past year or so, along with mostly lukewarm investor interest, I actually think we could see more closures than launches here moving forward.”

Loading Tweet..

But Valkyrie CEO Leah Wald told Blockworks in an email she foresees demand for many more crypto-related products, adding that Schwab launching this ETF is proof of institutions becoming increasingly comfortable with the asset class. Valkyrie currently offers a bitcoin futures ETF and a bitcoin mining ETF.

“We welcome their entry into the space and…believe that there is still plenty of room for growth in the diversity of offerings available to investors,” Wald said. “The capacity will be needed once regulatory clarity comes and the wave of capital it brings will need more than a handful of places to go.”

Slow asset growth amid rough performance 

Invesco’s Crypto Economy ETF (SATO) launched last October and has about $4 million in assets. Rene Reyna, the $1.4 trillion fund group’s head of thematic and specialty ETF strategy, said digital assets remain an emerging investment theme that requires investor education.

“We are committed to the digital asset space and will continue to monitor investor demand and product development opportunities,” Reyna told Blockworks in an email. 

Fidelity’s Crypto Industry and Digital Payments ETF (FDIG) and BlackRock’s iShares Blockchain and Tech ETF (IBLC), which both launched in April, have roughly $13 million and $6 million in assets under management, respectively.

Spokespeople for BlackRock and Fidelity declined to comment. 

Though most crypto ETFs have failed to gather assets in recent months in the throes of a lingering bear market, interest in these products may be due for a revival once the sell-off ends, said Neena Mishra, director of ETF research at Zacks Investment Research.

“ETF providers are also aware that they cannot ignore digital assets and blockchain technology,” Mishra told Blockworks.

Schwab’s ETF tracks its own index of crypto-related stocks. The index’s top five holdings, as of Tuesday, were sector stalwarts MicroStrategy, Marathon Digital, Riot Blockchain, Silvergate Capital and Coinbase.

Marathon Digital, Riot Blockchain and Coinbase are also in the top five holdings in IBLC and FDIG, while Marathon, Riot and Silvergate are among SATO’s top five.

Crypto-related stocks and ETFs have been hammered this year amid the sell-off of bitcoin and other digital assets. The largest — Amplify Investments’ Transformational Data Sharing ETF (BLOK) — is down roughly 44% year to date. 

SATO has lost even more, plummeting 59% so far in 2022, while IBLC and FDIG are down about 18% and 25%, respectively, over the same time period.

“If bitcoin rebounds strongly, we could see many new products,” Mishra said. “However, I’m not sure if many providers would follow Schwab by launching ultra-cheap crypto related ETFs, since investors pay more attention to performance in thematic ETF areas.”


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Bain Capital Crypto and Haun Ventures co-led the round as demand grows for Bitcoin-denominated savings and annuities

by Blockworks /
article-image

NYSE owner’s investment values the prediction market at $8–9 billion, signaling Wall Street’s entry into event-based trading

by Blockworks /
article-image

Pineapple begins deploying its $100 million Injective Digital Asset Treasury, staking INJ to earn yield and fund onchain mortgage ambitions

by Blockworks /
article-image

Staking levels in the ether funds will depend on protocol unstaking queue times and anticipated redemption activity, firm says

article-image

ETF inflows, miner strength, and tightening supply drive Bitcoin past its prior peak amid renewed demand for scarce assets

by Blockworks /
article-image

The Guidestar team, led by Alex Nezlobin, will join Uniswap Labs to enhance automated market maker design and smart order routing

by Blockworks /