CoinShares, a prominent cryptocurrency-focused company, announced on Friday that it has withdrawn all of its applications to launch spot cryptocurrency exchange-traded funds (ETFs) in the United States. This decision includes filings for ETFs based on XRP and Solana (SOL).
Concurrently, the demand for both XRP and SOL on Wall Street has demonstrated significant strength, with cumulative total inflows surpassing $600 million for each of these large-cap altcoins.
CoinShares Withdraws from ETF Race
The competition to launch spot cryptocurrency ETFs in the United States has intensified in recent weeks. Several issuers have adopted a new strategy to navigate the U.S. Securities and Exchange Commission’s (SEC) stringent approval process. This strategy involves removing the "delaying amendment" clause, which effectively guarantees successful launches if all other criteria are met.
While several such financial instruments commenced trading on U.S. markets in November, CoinShares, which had filed applications for at least three, has opted to withdraw. The company filed on Friday to retract its applications for XRP, Litecoin (LTC), and Solana (SOL) staking ETFs. Additionally, CoinShares is winding down its Bitcoin futures leveraged ETF (BTFX.O).
Jean-Marie Mognetti, the CEO of CoinShares, stated that differentiation opportunities and sustainable margins are limited as long as the U.S. market continues to consolidate around major players offering single-asset crypto ETPs.
Instead, the company indicated it would concentrate on higher-margin opportunities in anticipation of its U.S. listing. It is worth recalling that CoinShares announced plans to list on the Nasdaq in September through a $1.2 billion merger with a special purpose acquisition company (SPAC) named Vine Hill Capital Investment Corp.
Strong Performance of XRP and SOL ETFs
Earlier this year, the spot Solana ETF issued by Bitwise set a record for the largest opening day trading volume, reaching $57 million. However, this record was surpassed when Canary Capital’s XRPC launched in mid-November, achieving close to $60 million in trading volume on its first day.
Subsequent launches of other spot crypto ETFs, including additional XRP-tracking funds and Grayscale’s DOGE ETF, did not manage to exceed these figures. Despite this, the overall inflow statistics for XRP and SOL products remain notably impressive.
Data compiled by SoSoValue reveals that XRP ETFs have attracted over $660 million since the debut of the first XRP ETF just over two weeks ago. The total inflows into SOL ETFs are slightly lower, standing at approximately $620 million. In contrast, DOGE has underperformed expectations, with a total net inflow of only $2.16 million as of Friday.