CoinShares, a leading European digital asset investment firm, has withdrawn its application to the U.S. Securities and Exchange Commission (SEC) for a staked Solana (SOL) exchange-traded fund (ETF). The decision, revealed in a recent SEC filing, signals a shift in the company's strategy amid a rapidly evolving and competitive crypto ETF market. CoinShares also withdrew filings for XRP and Litecoin ETFs.
The filing indicated that the structuring deal and asset purchase behind the proposed fund were never completed. CoinShares had originally submitted the S-1 form for the Solana Staking ETF in June 2025, with subsequent amendments in July and September. However, the withdrawal notice confirmed that no transactions occurred and no securities were sold. Similar requests were made for the XRP and Litecoin ETFs, citing that the planned structures were not implemented as expected.
CoinShares' move comes as the company prepares for a U.S. public listing following a $1.2 billion merger with Vine Hill Capital Investment Corp. While the company has not provided explicit reasons for withdrawing the ETF applications, industry observers suggest a combination of factors may be at play.
One potential reason is the increasingly competitive landscape of the U.S. crypto ETF market. Major players like BlackRock and Fidelity Investments have established a strong presence, leading to aggressive fee reductions and compressed profit margins. CoinShares, which manages approximately $10 billion in assets and holds a 34% market share in Europe, may be reluctant to engage in a "fee war" for commoditized single-asset products.
Instead, the company is expected to focus on higher-margin opportunities, such as actively managed strategies, thematic baskets, and crypto equity vehicles. This strategic pivot aims to differentiate CoinShares from U.S. incumbents and capitalize on its expertise in digital asset management.
The withdrawals also come at a time of evolving regulatory expectations. The SEC's stance on crypto ETFs has been subject to change, as demonstrated by the agency's withdrawal of delay notices on Solana and XRP ETF reviews. Market headwinds and recent outflows in digital asset funds may have further contributed to CoinShares' decision to reassess its approach to exchange-traded products.
Despite abandoning its specific Solana, XRP, and Litecoin ETF plans, CoinShares intends to launch new U.S. products, including crypto equity vehicles, thematic baskets, and actively managed strategies. The company is also closing its CoinShares Bitcoin Futures Leveraged ETF (Ticker: BTFX).
The withdrawal of CoinShares' application leaves a smaller pool of contenders seeking SEC approval for altcoin ETFs. Several spot XRP ETFs have already debuted in the U.S. this year, with significant assets under management. The market continues to watch for further developments in the ETF space, particularly regarding Solana and other prominent cryptocurrencies.
