CoinShares Abandons Three Major Cryptocurrency ETF Applications

• CoinShares withdrew three cryptocurrency ETF applications for Solana, XRP, and Litecoin from SEC review.
• All products were terminated before any shares were sold using formal Form RW withdrawal requests.

Digital​‍​‌‍​‍‌​‍​‌‍​‍‌ asset manager CoinShares has taken the step of formally pulling back its three crypto exchange-traded fund proposals from the consideration of federal securities regulators. The firm has decided to back out of the regulatory reviews that had been ongoing for several months by submitting withdrawal letters for the ETFs that would have tracked Solana, XRP, and Litecoin. In each case, the products were discontinued prior to any public offerings, as evidenced by the records attached to the filings made with the respective ​‍​‌‍​‍‌​‍​‌‍​‍‌agencies.

Strategic Retreat From Altcoin ETF Market

The​‍​‌‍​‍‌​‍​‌‍​‍‌ investment firm made use of Form RW requests to officially give up each product one by one, thus assuring that no securities transactions took place during the period of the application. In June, CoinShares initially filed its Solana Staking ETF registration, and subsequently made several amendments during the summer and early fall. In a similar way, the XRP-focused product went through the second set of changes in August and October before the company decided to withdraw the application altogether this month. 

The Litecoin ETF proposal that was initially submitted in January did not go beyond the registration stage despite the company’s months of engagement with the regulators. On behalf of the European investment management company, Charles Butler ,as a senior financial officer, wrote his signature on all three withdrawal ​‍​‌‍​‍‌​‍​‌‍​‍‌letters.

This​‍​‌‍​‍‌​‍​‌‍​‍‌ choice comes at a time when the cryptocurrency market investment products is changing rapidly, and regulators are gradually becoming more favourable to digital asset ETFs. In fact, the latest moves of securities regulators indicate that the periods of waiting for responses to requests might be replaced by the actual approval of these products, as is seen from the withdrawal of the delay notices for the products in competition.

 There are also other investment companies that are still very much engaged in the process of launching such products, and as a result of the positive changes, Franklin Templeton has recently moved forward with Solana ETF ​‍​‌‍​‍‌​‍​‌‍​‍‌registration.

The​‍​‌‍​‍‌​‍​‌‍​‍‌ three cryptocurrencies whose values were affected most obviously after the withdrawal news witnessed their prices go down within a few hours. Solana was hit the hardest as it lost more than 2% of its value, while Litecoin also fell by a little over 2%. The impact of the news on XRP was minimal as it went down by less than 0.5%. 

The race for cryptocurrency ETFs to get approved by the regulator is getting fiercer day by day as several issuers are submitting various digital asset product proposals. CoinShares decided to drop the three applications at once, but has not communicated to the public its strategic rationale for this ​‍​‌‍​‍‌​‍​‌‍​‍‌move.

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