CoinShares Rethinks Crypto ETF Strategy Ahead of US Expansion

CoinShares, a prominent European cryptocurrency firm, has made a strategic pivot, withdrawing its applications for three planned exchange-traded funds (ETFs) in the United States. This decision comes as the company prepares for its Nasdaq listing and seeks to capitalize on more lucrative opportunities within the rapidly consolidating US crypto market.

Withdrawing ETF Applications

The company has formally requested the Securities and Exchange Commission (SEC) to withdraw its registration statements for the following ETFs:

• XRP ETF
• Solana Staking ETF
• Litecoin ETF

In addition, CoinShares is also winding down its Bitcoin futures leveraged ETF.

A New Playbook

CEO Jean-Marie Mognetti explained that the US market is increasingly dominated by large players offering single-asset crypto ETPs. This environment limits the potential for differentiation and sustainable profit margins. As a result, CoinShares is adopting a "different playbook," focusing on areas where it can achieve greater success.

Future US Market Plans

CoinShares intends to introduce new products to the US market within the next 12 to 18 months. These may include:

• Crypto equity exposure vehicles
• Thematic baskets
• Actively managed strategies combining crypto and other assets

US Expansion Plans

CoinShares agreed in September to list on the Nasdaq through a $1.2 billion merger with Vine Hill Capital Investment Corp, a special purpose acquisition company. The company has approximately $10 billion in assets under management and has a presence in France, Sweden, the UK, and the US.

Key Takeaways

• CoinShares is withdrawing plans for XRP, Solana, and Litecoin ETFs in the US.
• The company cites a consolidating market dominated by single-asset ETPs as the reason.
• CoinShares plans to introduce new crypto-related products in the US, including crypto equity exposure and actively managed strategies.