In the latest downturn of the cryptocurrency market, CoinShares, a leading European asset
manager focused on digital assets, has withdrawn its plan to launch three exchange-traded
funds in a move to focus on higher-margin opportunities ahead of its U.S. listing.
The announcement last Friday was latest pullback in what has become a highly volatile and
declining crypto market. The market has dropped as much as 5.66% of its value, with
Bitcoin falling to $104,000 last week, while other major cryptocurrencies Ethereum and
Solana experiencing losses ranging from 6% to 15%. In addition to investors backing off
due to the uncertainty of further interest rate cuts, there has been a notable outflow of ETFs
(Exchange Traded Funds), with Bitcoin ETFs alone withdrawing $202 million. This sudden
reversal in ETF inflows has further pressured the market, causing significant liquidation
among leveraged traders.
Bitcoin slumped more than 6% again on Monday afternoon, sliding from just about $91,000
to roughly $85,600-that could trigger another wave of selloffs.
Meanwhile, CoinShares has filed with the Securities and Exchange Commission to
withdraw its registration statements for XRP ETF, solana staking ETF, and Litecoin ETF.
CoinShares CEO Jean-Marie Mognetti said that the U.S. market consolidates around large
players in single-asset crypto ETPs, opportunities for differentiation and sustainable
margins are limited, necessitating a “different playbook”.
Separately, the company is also winding down its CoinShares bitcoin futures leveraged ETF.
The company also said that it will continue to focus on getting new product to the U.S.
market over the next 12 to 18 months, including crypto equity exposure vehicles, thematic
baskets and actively managed strategies combining crypto and other assets.
Speculation among analysts is that CoinShares withdrawal is not tied to regulatory
pushback, but rather to a collapse of the structuring deal behind the Solana ETF.
In September, CoinShares agreed to list on the Nasdaq through a $1.2 billion merger with
special purpose acquisition company Vine Hill Capital Investment Corp.
Having centered their business on crypto since 2013, CoinShares had approximately $10
billion in assets under management as of September with a presence in the U.K., France
and Sweden, as well as the United States.
CoinShares withdrawal comes after two other staked Solana ETFs launched earlier this
year: the REX-Osprey product in June, and Bitwise’s fund in October. The latter immediately
became one of the most successful crypto ETF launches of 2025, opening with nearly $223
million in assets on day one, roughly half of what it took the REX-Osprey product months of
trading to accumulate.
Thus far, ETF inflows have not offset broader sell-side pressure. The REX-Osprey and
Bitwise products continue to pull in capital, but their impact is diluted thanks to market-
wide deleveraging, profit grabbing after Solana’s huge start to 2025 and falling memecoin
volumes.
CoinShares withdrawal leaves REX-Osprey and Bitwise as the primary issuers offering
staked solana exposure in the United States. Their products continue to attract assets, but
their ability to influence spot SOL depends on whether Solana regains momentum in
meme coins, trading volume and DeFi (decentralized finance) activity.
