CoinShares has withdrawn its application with the U.S. Securities and Exchange Commission (SEC) for a staked Solana (SOL) exchange-traded fund. This decision follows the failure of the underlying asset purchase and fund-structuring agreement to proceed.
In a filing submitted on Friday, the company clarified that the planned transaction “was ultimately not effectuated.” CoinShares also stated that no shares were issued or sold as part of the proposed ETF structure.
Market Demand and Competition
This withdrawal occurs despite a period of rapidly rising demand for staked Solana investment products. These products offer yield generated from Solana’s network validation activities. Competitors in the market have experienced strong uptake in similar offerings. REX-Osprey launched the first staked Solana ETF in June, and Bitwise followed suit in October.
The Bitwise fund debuted with nearly $223 million in assets on its first day. This was approximately half the size of the REX-Osprey fund at its launch, according to ETF analyst Eric Balchunas.
Investor Appetite for Yield-Bearing Products
Across November alone, Solana ETFs attracted more than $369 million in fresh inflows. This occurred even as the broader crypto ETF market faced challenges. Bitcoin and Ethereum ETFs experienced record outflows during the same period, indicating a discernible shift in investor appetite toward yield-bearing products.
Staked SOL ETFs typically advertise expected rewards ranging between 5% and 7%. This feature has been a significant draw for income-focused crypto investors.
Solana's Price Performance and Forecasts
Despite the strong demand for ETF products, Solana's price has not mirrored this trend. SOL saw a decline to a five-month low near $120 in November. This is a considerable drop from its January 2025 peak of nearly $295. Earlier forecasts that predicted SOL reaching $400 have since been revised downward.
Analysts are now cautioning that Solana may face difficulties in reclaiming even the $150 price level.
Factors Influencing SOL's Momentum
A significant portion of SOL’s bull run earlier in the year was attributed to the frenzy surrounding the Official Trump meme coin. This meme coin launched on the Solana network and substantially boosted liquidity across various Solana-based meme coins. While institutional interest in ETF products has persisted, this specific momentum driver has cooled considerably.