Why CoinShares Drops the $600 Million XRP and SOL ETF Battle

The company’s CEO said they have a new focus.

One of the largest cryptocurrency-focused companies, CoinShares, said on Friday that it has withdrawn all its applications to launch spot crypto ETFs in the United States, including applications for XRP and SOL.

At the same time, demand for both large-cap altcoins on Wall Street was quite impressive, with cumulative total inflows for both exceeding $600 million.

CoinShares withdraws

The battle for spot crypto ETFs in the United States has become increasingly popular in recent weeks, as numerous issuers have come up with a new way to bypass the SEC’s stringent approval process by removing the “deferral change” part, which essentially guarantees a successful launch if all other criteria are met.

While several such financial instruments hit US markets in November, CoinShares, which had applied for at least three, decided fall out. It submitted on Friday withdrew its applications for XRP, LTC and SOL staking ETFs. It is also winding down its bitcoin futures leveraged ETF (BTFX.O).

The company’s CEO Jean-Marie Mognetti argued that differentiation opportunities and sustainable margins are limited as long as the US market consolidates around major players in single-asset crypto ETPs.

Instead, the company said it would focus on higher-margin opportunities ahead of its U.S. listing. Recall that in September it announced plans to list on the Nasdaq through a $1.2 billion merger with a special purpose acquisition company (SPAC) called Vine Hill Capital Investment Corp.

XRP, SOL ETFs on Fire

The spot Solana ETF issued by Bitwise set the record for the largest opening day earlier this year with a trading volume of $57 million. However, that record fell when Canary Capital’s XRPC hit the US markets in mid-November, trading at almost $60 million.

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Subsequent releases of other spot crypto ETFs, such as more XRP tracking funds, as well as Grayscale’s DOGE ETF, failed to surpass these numbers. Nevertheless, the overall inflow figures for the XRP and SOL products are quite impressive.

Data from SoSoValue shows that the XRP ETFs have attracted more than $660 million since the first one debuted just over two weeks ago. Total inflows into the SOL ETFs are slightly lower, around $620 million. However, DOGE has disappointed so far, with total net inflows of just $2.16 million on Friday.