CoinShares has officially withdrawn its application for a Solana staking ETF, choosing instead to pursue more profitable ventures as it prepares for a major U.S. market entry.
Key Takeaways
- Despite strong investor interest in Solana ETFs, with over $369 million in inflows in November alone, SOL’s price has fallen sharply.
What Happened?
On Friday, CoinShares filed to officially withdraw its pending application for a Solana staking exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). The asset manager cited that the underlying transaction for which the ETF shares were being registered had not been executed. No shares were ever issued or sold under the proposed registration.
This move is part of a broader strategy shift as CoinShares also canceled planned ETFs for XRP and Litecoin, indicating a redirection of focus as it prepares to go public in the U.S. market.
🚨JUST IN: @CoinSharesCo has filed to withdraw its Form S-1 for the CoinShares Solana Staking ETF. pic.twitter.com/BZEYkJnHaY
— SolanaFloor (@SolanaFloor) November 28, 2025
CoinShares Refocuses Ahead of U.S. Public Listing
CoinShares, a European-based digital asset manager, is recalibrating its U.S. game plan. CEO Jean-Marie Mognetti explained that the American crypto ETF market has grown increasingly crowded, with major players dominating single-asset crypto products. According to him, this limits differentiation and profitability.
Instead of competing directly in that space, CoinShares will pivot toward alternative investment products. Over the next 12 to 18 months, the firm aims to introduce:
- Crypto equity exposure vehicles.
- Thematic investment baskets.
- Actively managed strategies that blend crypto with traditional assets.
This strategic reset aligns with CoinShares’ upcoming Nasdaq debut, planned through a $1.2 billion SPAC merger with Vine Hill Capital Investment Corp, announced in September.
Investor Demand High Despite ETF Cancellations
CoinShares’ withdrawal stands in contrast to the rising popularity of Solana-based ETFs in the U.S. The first such fund, launched by REX-Osprey in June, was followed by Bitwise’s own staked SOL ETF in October. Bitwise’s ETF alone launched with nearly $223 million in assets on its first day, gaining quick traction in the market.
Combined, Solana ETFs brought in over $369 million in inflows during November, showcasing strong investor interest, particularly due to 5 to 7 percent staking rewards that these vehicles offered. These inflows occurred even as Bitcoin and Ethereum ETFs experienced heavy outflows during the same period.
However, this enthusiasm has not translated to price performance. SOL’s price has slumped, reaching a five-month low of approximately $120 in November, a steep fall from its January peak of around $295. Analysts had previously predicted SOL could hit $400, but expectations have since been tempered, with some now doubting a return to even the $150 mark soon.
The January surge was fueled by speculative hype around the Official Trump memecoin launch on Solana, which briefly sparked a wave of memecoin trading on the network.
CoinLaw’s Takeaway
In my experience, this move by CoinShares is less about giving up and more about playing smart. The U.S. crypto ETF landscape is already brimming with giants, and jumping into that pool without a unique edge is risky. What I find clever here is CoinShares’ pivot toward mixed-asset and actively managed products, which could actually give them more room to innovate and appeal to a broader range of investors.
Even though Solana-based ETFs are pulling in real money, the underlying asset’s performance is telling a different story. This divergence between inflows and price performance is something I’d keep an eye on. It’s a reminder that high interest in ETFs doesn’t always mean bullish momentum for the token itself.
