CoinShares Exits XRP and SOL ETF Battle Amid Strong Investor Interest
CoinShares just declared that it is dropping all of its spot cryptocurrency ETF applications in the United States, including submissions for SOL and XRP. With cumulative inflows exceeding $600 million for each token, the increase coincides with Wall Street’s continued strong demand for large-cap altcoins. According to analysts, this choice illustrates the growing difficulties faced by entrants in a U.S. industry that is dominated by well-established firms.
U.S. Crypto ETF Market Consolidation Prompts CoinShares Pullback
In addition to winding down its Bitcoin futures leveraged ETF (BTFX.O), the company filed on Friday to withdraw its applications for XRP, LTC, and SOL staking ETFs. CEO Jean-Marie Mognetti noted that the existing U.S. scenario inhibits differentiation and sustainable margins for new entrants. Prior to its anticipated Nasdaq offering, CoinShares will instead concentrate on higher-margin possibilities. Through a $1.2 billion SPAC merger with Vine Hill Capital Investment Corp., the listing was made public in September.
XRP and SOL ETFs Surpass $600M Despite CoinShares Exit
XRP and SOL ETFs are still very popular despite CoinShares’ withdrawal. Earlier this year, with $57 million in trading volume, Bitwise’s Solana spot ETF established an opening-day record. Canary Capital’s XRPC ETF, which reached about $60 million in mid-November, exceeded this amount. According to data from SoSoValue, SOL ETFs have amassed almost $620 million, while XRP ETFs have drawn over $660 million since their launch. With only $2.16 million in net inflows, Grayscale’s DOGE fund and other altcoin ETFs have underperformed. This underscores the concentrated desire for SOL and XRP.
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