CoinShares has withdrawn registration filings for its XRP, Solana-staking, and Litecoin ETFs. This comes just as the company prepares for a $1.2 billion Nasdaq listing through a SPAC. The move also follows the wind-down of a leveraged Bitcoin-futures ETF.
The US crypto ETF market is consolidating rapidly, and single-asset altcoin ETFs face challenges. Distribution costs are high, liquidity is fragmented, and market makers are less willing to maintain tight spreads. Bitcoin and Ethereum funds dominate, leaving altcoin ETFs with limited flows and higher risk.
CoinShares is refocusing on products with higher profit potential. The firm plans to pivot toward equity exposure, thematic baskets, and active strategies combining crypto with traditional assets. These products offer stronger differentiation and margins compared to single-asset altcoin ETFs.
The withdrawal narrows CoinShares’ near-term pipeline but positions it for a cleaner US debut. Analysts say active and thematic crypto funds are in demand and could pay off if the firm executes well.
This move highlights a new reality: in the US, scale, strategy, and differentiation are now as important as innovation for crypto ETF issuers.
