CoinShares Withdraws XRP, SOL, and LTC ETF Applications Amid Strategic Shift

Digital asset manager CoinShares has officially withdrawn its registration statements with the U.S. Securities and Exchange Commission (SEC) for spot exchange-traded funds (ETFs) tied to Ripple (XRP), Solana (SOL), and Litecoin (LTC), including a staking ETF for Solana. The withdrawal was confirmed in filings submitted to the SEC, with no shares ever issued, making the decision final.

According to reports, CoinShares failed to complete the required fund setup, not meeting the SEC's operational prerequisites. However, the company cited strategic reasons for the move, driven by a rapidly evolving U.S. crypto ETF market where large institutions like BlackRock and Fidelity dominate inflows, making it difficult for mid-sized issuers to compete profitably. CEO Jean-Marie Mognetti emphasized that distribution expenses are rising, and single-asset altcoin ETFs are tough to scale in this environment.

CoinShares, which expanded into the U.S. ETF market after acquiring Valkyrie's ETF business in 2024, now plans to shift focus to higher-margin opportunities, such as crypto-equity exposure vehicles, thematic investment baskets, and actively managed funds that blend traditional and digital assets. These products are expected to be launched within 12 to 18 months and offer better profit potential than single-asset ETFs.

The withdrawal occurs against a backdrop of regulatory uncertainty, with the SEC remaining cautious on staking and certain transactions, as well as market-wide pressures. For context, Bitcoin ETFs, including BlackRock's IBIT, saw record outflows of $4 billion in November 2025, contributing to a 20.82% decline in Q4. This environment highlights the risks inherent in single-asset crypto ETFs and broader structural challenges in the sector.