CoinShares, which manages $10 billion in AUM, has unexpectedly pulled its registration statements for three U.S. crypto exchange-traded funds (ETFs): one for XRP, a Solana Staking ETF, and a Litecoin ETF. This decision, filed with the SEC on November 28, 2025, comes despite strong rising investor interest in XRP and Solana-based funds.
Key Reasons for the Withdrawal
CEO Jean-Marie Mognetti cited the overly crowded and consolidated U.S. ETF market as the primary reason for the strategic shift.
- Dominance of Giants: Institutional players like BlackRock, Fidelity, and Bitwise now account for over 90% of all inflows into crypto ETFs.
- Low Margins & Slow Growth: Mognetti indicated that entering the market with new, similar products would likely guarantee low margins and slow growth for CoinShares.
- Strategic Correction: The move is seen as a “strategic correction,” following previous hints from CoinShares in September that the U.S. market was “not friendly to innovation.”
As part of this shift, CoinShares is also winding down its existing Bitcoin futures leveraged ETF (BTFX).
New U.S. Market Strategy
CoinShares is not leaving the U.S. market but is instead choosing a “smarter path” by focusing on differentiated products over the next 12 to 18 months. Their upcoming product line includes:
- Crypto-equity exposure products
- Thematic crypto baskets
- Actively managed strategies mixing crypto and traditional assets
These offerings are designed to appeal to a broader investor base seeking crypto exposure without direct token ownership, allowing CoinShares to create products that “stand out” instead of being lost in the competition.
Competitive Landscape
The withdrawal highlights the intense competition, especially in the XRP market, where several spot XRP ETFs (from Grayscale, Bitwise, etc.) have already launched this year, attracting over $870 million in combined assets.
