CoinShares has officially terminated its U.S. XRP ETF plans, filing a full withdrawal with the SEC. This decision brings to an end a product that was intended to enter a rapidly expanding market. The move is notable as it comes amid high anticipation for XRP ETF launches.
Crypto analyst Diana (@InvestWithD) shared the filing, emphasizing that CoinShares did not opt for a temporary pause, but rather a final decision indicated by Form RW.
The filing clearly states that the planned transaction "was not effectuated" and confirms that no shares were sold. CoinShares chose to end the entire registration process instead of pursuing the SEC’s new fast-track path.
BREAKING: CoinShares Just Withdrew Their XRP ETF Forever— Here’s What It Actually Means
CoinShares officially withdrew their entire U.S. $XRP ETF filing today. Not paused. Not delayed. Fully…
Market Conditions Influence Decision
The U.S. ETF market has seen rapid changes, with major firms now dominating the space. Diana highlighted the strength of firms like BlackRock, Bitwise, and Franklin Templeton as a significant factor creating pressure for smaller issuers.
The scale of these established players makes it challenging for new entrants to compete effectively on cost, liquidity, and marketing reach. Although BlackRock has not yet entered the XRP ETF race, many market participants anticipate its involvement. Experts have also indicated that 12 XRP ETFs are prepared for launch, suggesting CoinShares may be adjusting its priorities to avoid intense competition.
CoinShares has also recently pursued a major strategic shift through its Nasdaq merger, aiming for global expansion and diversified revenue streams. A U.S. XRP ETF may no longer align with this evolving business strategy.
Impact on the XRP Market
This withdrawal does not indicate a decline in interest in XRP; rather, it reflects the current competitive landscape of the ETF industry. Firms without extensive distribution networks face high entry costs in a segment where fee compression can limit future returns.
Four major XRP funds recently recorded over $85 million in trading volume on a Monday, demonstrating significant institutional interest in XRP. The XRP ETF sector continues to grow despite CoinShares' decision to withdraw.
Diana noted that 21Shares is preparing to launch its XRP ETF early next week, with market participants expecting considerable interest in its debut. This launch is expected to maintain liquidity in the XRP segment, even without CoinShares' participation.
Large issuers maintain a strong presence in the digital asset ETF market. Many analysts anticipate BlackRock's entry into the XRP ETF market in the near future, which could significantly boost visibility and inflows. The foundation for sustained long-term growth in the XRP market remains robust.