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CoinShares Pulls US Crypto ETF Plans Amid Fierce Competition from Wall Street Giants
- CoinShares has withdrawn its US ETFs for XRP, Solana, and Litecoin, also ending its Bitcoin Futures Leveraged ETF.
- The firm will shift focus to higher-margin products: crypto equity funds, thematic baskets, and actively managed strategies.
- The withdrawal coincides with a US$1.2 billion (AU$1.85 billion) SPAC merger, taking CoinShares public in the U.S.
CoinShares has decided to withdraw several planned US cryptocurrency ETFs, including those linked to XRP, Solana Staking, and Litecoin, and to wind down its Bitcoin Futures Leveraged ETF. CEO Jean-Marie Mognetti explained that the single-asset ETF market offers limited opportunities for differentiation, making it difficult to achieve sustainable profit margins in a space dominated by large institutions such as BlackRock, Fidelity, and Grayscale.
On 28 November 2025, the European asset manager submitted formal withdrawal requests to the US Securities and Exchange Commission.
Each request, signed by Principal Financial Officer Charles Butler, confirmed that no shares had been issued under the previous S-1 registrations. Rising distribution costs and the challenges of competing with established financial players also contributed to the decision to pull the ETFs.
Related: Grayscale Moves to Convert Zcash Trust Into First-of-Its-Kind Privacy Coin Spot ETF
Focusing on Higher-Margin Crypto Products
Instead of continuing in a crowded single-asset market, CoinShares will focus on higher-margin products with stronger long-term growth potential.
Planned offerings include crypto equity exposure vehicles, thematic baskets targeting specific blockchain innovations, and actively managed strategies that combine digital and traditional assets. Resources from the withdrawn ETFs will be redirected to these initiatives, which the company expects to launch over the next 12 to 18 months.
This strategic pivot aligns with CoinShares’ US$1.2 billion (AU$1.85 billion) SPAC merger with Nasdaq-listed Vine Hill Capital. Once completed, the deal will take the firm public in the United States and position it among the top four global crypto asset managers by ETF assets under management.
Related: Nasdaq Seeks 4x Expansion of Options Trading Limit for BlackRock’s Bitcoin ETF
Author
Rachel Lourdesamy
Rachel is a freelance writer based in Sydney with experience within financial services, marketing, and corporate communications in the APAC region. An avid reader and a graduate of the University of Sydney, she covers topics including business, finance and human interest.
