One of the largest cryptocurrency-focused companies, CoinShares, said on Friday that it has withdrawn all of its applications to launch spot crypto ETFs in the United States, including filings for XRP and SOL.
At the same time, the demand for both large-cap altcoins on Wall Street has been rather impressive, with the cumulative total inflows surpassing $600 million for each.
The battle for spot crypto ETFs in the United States has been gathering steam in the past several weeks, as numerous issuers filed a new way to bypass the SEC’s stringent approval process by removing the “delaying amendment” part, which essentially guarantees successful launches if all other criteria are met.
Although several such financial vehicles have hit the US markets in November, CoinShares, which had applied for at least three, decided to drop out. It filed on Friday to withdraw its applications for XRP, LTC, and SOL staking ETFs. It’s also winding down its bitcoin futures leveraged ETF (BTFX.O).
The firm’s CEO, Jean-Marie Mognetti, argued that differentiation opportunities and sustainable margins are limited as long as the US market consolidates around large players in single-asset crypto ETPs.
Instead, the company said it would focus on higher-margin opportunities ahead of its US listing. Recall that it announced plans to be listed on the Nasdaq in September through a $1.2 billion merger with a special purpose acquisition company (SPAC) called Vine Hill Capital Investment Corp.
The spot Solana ETF issued by Bitwise set the record earlier this year for the biggest opening day with a trading volume of $57 million. However, that record fell when Canary Capital’s XRPC hit the US markets in mid-November, as it notched close to $60 million.
The subsequent releases of other spot crypto ETFs, such as more XRP-tracking funds, as well as Grayscale’s DOGE ETF, couldn’t 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. The total inflows into the SOL ETFs are slightly lower at around $620 million. DOGE, though, has disappointed so far, with a total net inflow of just $2.16 million as of Friday.
