- CoinShares scraps its US Solana staking ETF as SOL ETFs see heavy inflows, signaling strong investor interest.
- XRP and Litecoin ETF plans canceled; CoinShares focuses on strategic growth amid weakening altcoin markets.
- Solana ETFs keep attracting big inflows, hinting at potential price surge despite current $SOL market lag.
CoinShares has abruptly withdrawn its application for a Solana staking ETF, raising questions about its US expansion strategy. The company filed to cancel its S-1 registration just months after its last amendment on September 26.
Besides timing, the withdrawal comes as newly launched SOL ETFs are seeing nearly constant inflows, signaling strong investor interest. Solana already supports seven actively trading ETFs, while CoinShares remains among eight other funds still in the approval process. Hence, the decision halts the sale of any proposed shares and scraps the intended product structure.
The withdrawal may indicate a potential restructuring or a new approach to a Solana-based fund. Additionally, staking ETFs requires selecting a reliable validator to optimize yields, a crucial factor in fund performance. CoinShares still maintains a Solana staking ETP listed on the Frankfurt exchange, but it remains unclear why the US product never launched.
The company manages over $10 billion in assets, ranking fourth globally among ETP and ETF producers. Moreover, CoinShares commands roughly 34% of Europe’s crypto ETP market, highlighting its significant industry footprint.
Altcoin ETF Plans Scrapped Amid Market Weakness
CoinShares has also abandoned plans for an XRP and Litecoin ETF, citing the broader altcoin market slowdown. The move coincides with its upcoming US listing and merger with Vine Hill Capital. Consequently, these cancellations allow the firm to focus on strategic growth areas instead of entering a weakening market.
The removal of the XRP ETF leaves five contenders to launch the next fund. XRP saw multiple launches since October 29, with 21Shares’ new fund expected to start trading November 29. Additionally, twelve more XRP funds are anticipated in the following months, underscoring growing institutional interest.
Solana Market Outlook and ETF Activity
Despite CoinShares’ withdrawal, Solana ETFs are drawing substantial inflows. Analyst Marzell noted, “Solana could surge 80% as bullish technicals and strong fundamentals, including rising transactions, active users, futures interest, and $613M in spot $SOL ETF inflows, point to further upside.”
Similarly, Inspired Analyst reported, “Bitwise BSOL Solana ETF just scooped up 93,167 $SOL, worth $13.15M in the last hour.” Consequently, these accumulations suggest that Solana’s market could awaken soon, with current prices lagging behind institutional buying pressure.
