Single cryptoasset ETFs have little chance of differentiating, CoinShares says.
There are four XRP ETFs and six solana (SOL) ETFs on the market.
CoinShares, a digital asset manager based in the United States, has chosen to withdraw the applications it had submitted for the launch of three exchange-traded funds (ETFs) focused on XRP, solana (SOL) and litecoin (LTC).
The decision was formalized by filing Forms RW with the United States Securities and Exchange Commission (SEC). This is a regulatory document that is used precisely for notify the withdrawal of a registration statement previously submitted to the SECthus stopping the approval process of the securities offering.
CoinShares CFO Charles Butler was responsible for signing the withdrawal letters, which certified that no sales of securities or related transactions had occurred under the previous S-1 filings.
Additionally, the firm is also proceeding to liquidate its CoinShares Bitcoin Futures Leveraged ETF, as part of a strategic restructuring of its product offering in the North American country.
Jean-Marie Mognetti, CEO of CoinShares, communicated that the decision is based on the fact that the market for ETFs based on a single cryptocurrency, such as bitcoin or, in this case, XRP, solana and litecoin, It is becoming too competitive and saturatedwhich reduces your company’s ability to excel and be profitable in the long term.
This perspective arises in the face of the solid dominance of already established competitors in the market, such as Bitwise, Grayscale and Fidelity, who manage the majority of cryptocurrency-based funds. At the moment, The market already has four ETFs based on XRP and six on solanawhich have begun to be listed staggered between October and November, intensifying competition, as reported by CriptoNoticias.
Mognetti outlined the company’s new focus for the next 12 to 18 months, which prioritizes the introduction of innovative products in three main categories in the US market. These include vehicles for exposure to shares of companies in the ecosystem, which go beyond individual tokens; thematic baskets with exposure to specific blockchain innovation trends; and active management strategies that combine digital assets with other assets, leveraging CoinShares’ quantitative expertise.
The optimization of the product range through the liquidation of the CoinShares Bitcoin Futures Leveraged ETF and the redirection of resources that were destined for single-asset ETFs towards higher margin opportunities, consolidate this strategy of the manager.