CoinShares has withdrawn its application for a staked Solana ETF from the U.S. Securities and Exchange Commission. This decision was made after the asset deal that was foundational to the proposed product failed to close. The filing confirmed that no shares were sold as the planned transaction did not materialize.
CoinShares Halts U.S. ETF Expansion
CoinShares formally stated that the registration for its staked Solana ETF was contingent upon an asset purchase agreement that ultimately did not come to fruition. The filing indicated that the registration was intended to cover shares related to this specific deal, which formed the basis for the subsequent withdrawal. This development follows earlier amendments submitted in September as the firm sought to establish its presence among other applicants in the U.S. market.
This reversal occurs at a time when staking-focused SOL ETFs are actively entering the U.S. market. REX-Osprey launched the first staked Solana ETF in June, and Bitwise followed suit in October.
The Bitwise fund experienced significant initial success, opening with nearly $70 million in net inflows on its first trading day, according to data from SoSoValue. This strong performance highlights sustained demand for regulated, yield-bearing exposure to SOL. However, CoinShares opted not to proceed with its own entry, despite maintaining a Solana-based staking ETP in Europe. The company manages over $10 billion in assets and holds approximately 34% of the European crypto ETP market. This strategic pivot also aligns with CoinShares' broader plans, including a $1.2 billion merger with Vine Hill Capital, which was disclosed in September.
ETF Inflows Increase Amidst SOL's Multi-Month Lows
Despite the launch of new ETFs, the spot price of SOL has shown weakness, trading at multi-month lows. The token fell to near $120 in late November, significantly below its January high of over $290. This earlier peak coincided with the launch of a popular memecoin on Solana, which temporarily boosted network activity before volumes subsided.
Notably, Solana ETFs recorded substantial inflows totaling more than $419 million during November. This occurred even as broader cryptocurrency markets experienced significant selling pressure. These inflows stood in contrast to the outflows observed in Bitcoin and Ether ETFs through October and November. Investors were drawn to the advertised staking rewards of 5–7% offered by these products, creating a rare sector of consistent positive fund flows.
However, these increased ETF inflows did not translate into support for spot prices. The demand for staking exposure was insufficient to counteract sell-side pressures stemming from profit-taking, reduced memecoin activity, and decreased leverage in the market.
The Bitwise BSOL ETF has amassed over $527 million in assets, benefiting from a zero-fee structure until its assets exceed $1 billion. Most SOL ETFs experienced positive daily flows through late November, with the exception of the 21Shares TSOL ETF, which saw $34.4 million in outflows on November 26.
Scrapped Altcoin ETF Plans
CoinShares' decision to withdraw its staked SOL ETF application was not an isolated event. The firm also withdrew planned ETFs tied to XRP and Litecoin, according to its SEC filings. These actions are attributed to weakening market conditions and shifting priorities in anticipation of the company's planned U.S. listing via its merger with Vine Hill Capital.
This withdrawal leaves other issuers to continue developing the altcoin ETF landscape. Several spot XRP ETFs are already trading in the U.S., including offerings from REX-Osprey, Canary Capital, Bitwise, and Grayscale. Collectively, these funds have gathered over $700 million. Furthermore, twelve additional XRP funds are expected to launch in the coming months, based on recent disclosures.
Solana-linked issuers are also demonstrating similar momentum. Seven SOL ETFs are currently available for trading in the U.S., with several more pending review. However, the divergence between the growth of ETF assets and the decline in spot prices is a point of significant observation.
CoinShares' withdrawal underscores the impact of a failed structuring deal on its U.S. ETF ambitions. This move comes as staked Solana ETFs from REX-Osprey and Bitwise continue to attract consistent inflows. Despite these inflows, SOL's price remains under pressure due to challenging market conditions and a decrease in network activity.