Strategic Shift in U.S. Product Lineup
European digital asset manager CoinShares has unexpectedly withdrawn its application to launch an XRP exchange-traded fund (ETF), along with two other crypto products, as the firm shifts its U.S. strategy ahead of its upcoming Nasdaq listing. The decision has raised questions about market competition, profit margins, and whether the move signals anything about XRP’s broader ETF outlook.
In a filing submitted Friday, CoinShares requested that the U.S. Securities and Exchange Commission (SEC) formally withdraw its registration statements for three planned ETFs: an XRP ETF, a Solana staking ETF, and a Litecoin ETF.
The withdrawal marks a pause in what would have been one of the first attempts by a European issuer to expand into the U.S. single-asset crypto ETF segment beyond Bitcoin and Ethereum. The firm also confirmed it is discontinuing its CoinShares Bitcoin Futures Leveraged (BTFX) ETF, further signaling a complete reset of its existing U.S. product lineup.
U.S. Market Consolidation Drives Strategic Decision
CoinShares CEO Jean-Marie Mognetti explained the decision as a strategic response to the rapidly changing U.S. ETF landscape. With major asset managers such as BlackRock, Fidelity, and Grayscale dominating inflows into single-asset crypto ETPs, Mognetti stated that the competitive environment leaves limited opportunities for differentiation and sustainable margins.
According to Mognetti, this dynamic requires a different playbook, prompting CoinShares to redirect resources toward product categories where the firm can maintain stronger profitability rather than entering a segment now controlled by a small number of very large players.
While halting its XRP and other ETF plans, CoinShares emphasized that it is not exiting the U.S. market. Instead, the company plans to introduce new products across the next 12–18 months, including a crypto equity exposure vehicle, thematic investment baskets, and actively managed strategies blending crypto assets with traditional financial instruments. These offerings represent higher-margin opportunities, according to CoinShares, and align more closely with investor demand that the firm expects to grow over the next two years.
Preparing for Nasdaq Listing
The strategic shift comes on the heels of CoinShares’ agreement in September to go public on Nasdaq through a $1.2 billion merger with SPAC Vine Hill Capital Investment Corp. The listing will significantly expand the firm’s visibility and access to U.S. capital markets. Founded in 2013, CoinShares manages around $10 billion in assets and maintains operations across France, Sweden, the United Kingdom, and the United States.
Implications for XRP ETFs
While some investors initially interpreted the withdrawal of the XRP ETF application as a bearish signal, analysts note that CoinShares’ decision appears tied primarily to competitive and economic considerations, not regulatory or asset-specific concerns. The U.S. ETF market is currently dominated by a handful of mega-issuers able to operate at thin margins, making it difficult for mid-sized firms to profit from launching single-asset crypto ETFs.
As a result, analysts say the move says more about CoinShares’ business strategy than about XRP’s long-term prospects in the ETF landscape. Importantly, other institutions continue to pursue XRP-based products, and U.S. ETF interest in XRP remains strong, particularly as institutional accumulation of XRP accelerates across global exchanges.