COINSHARES BACKS OUT OF $600M XRP AND SOL ETF COMPETITION
CoinShares, one of the leading cryptocurrency-focused firms, announced on Friday that it has withdrawn all of its applications to launch spot crypto ETFs in the United States, including those for XRP and SOL.
Despite the withdrawal, demand for these major altcoins on Wall Street remains strong, with cumulative inflows for both XRP and SOL surpassing $600 million each.
CoinShares Withdraws from US Spot Crypto ETF Race
The race for spot crypto ETFs in the United States has intensified in recent weeks, as multiple issuers sought ways to bypass the SEC’s strict approval process by removing the “delaying amendment,” which effectively increases the chances of a successful launch if all other requirements are met.
Despite several spot crypto ETFs hitting US markets in November, CoinShares decided to step back. On Friday, the firm filed to withdraw its applications for XRP, LTC, and SOL staking ETFs, and to wind down its bitcoin futures leveraged ETF (BTFX.O).
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CEO Jean-Marie Mognetti explained that opportunities for differentiation and sustainable profit margins are limited. At the same time, the US market remains concentrated around a few major players offering single-asset crypto ETPs. Instead, CoinShares plans to focus on higher-margin opportunities, especially ahead of its Nasdaq listing through a $1.2 billion SPAC merger with Vine Hill Capital Investment Corp announced in September.
XRP and SOL ETFs Continue to Draw Strong Demand
Spot crypto ETFs for Solana and XRP have seen impressive inflows despite CoinShares’ withdrawal. The Bitwise Solana ETF set a record earlier this year with a $57 million opening-day trading volume, only to be surpassed by Canary Capital’s XRPC in mid-November, which reached nearly $60 million.
Other recent launches, including XRP-tracking funds and Grayscale’s DOGE ETF, did not surpass these figures. However, overall inflows remain strong. Data from SoSoValue indicates that XRP ETFs have gathered over $660 million since their debut just over two weeks ago, while SOL ETFs have attracted around $620 million. DOGE ETFs, by comparison, have seen minimal inflows of just $2.16 million as of Friday.
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FAQs
Q: Why did CoinShares withdraw its ETF applications?
A: CoinShares pulled back from XRP, SOL, and LTC staking ETF applications, citing limited differentiation opportunities and low profit margins in a US market dominated by major single-asset players.
Q: Which ETFs did CoinShares withdraw?
A: XRP, SOL, and LTC staking ETFs, along with its bitcoin futures leveraged ETF (BTFX.O).
Q: Is there still demand for XRP and SOL ETFs?
A: Yes, XRP ETFs have seen over $660 million in inflows, and SOL ETFs around $620 million since launch.
Q: How did SOL ETFs perform on their opening days?
A: Bitwise SOL ETF opened with $57 million, later surpassed by Canary Capital’s XRPC with nearly $60 million.
Q: How are DOGE ETFs performing?
A: DOGE ETFs have had minimal inflows, totaling just $2.16 million as of Friday.
Q: What is CoinShares’ next focus?
A: The company plans to pursue higher-margin opportunities, including its upcoming Nasdaq listing through a $1.2 billion SPAC merger.
