Bitcoin recently reclaimed the $91,000 mark after hitting its daily low. However, CoinShares, a prominent player in the crypto industry, announced the withdrawal of three altcoin applications, raising questions and speculation within the market. This decision potentially signals broader concerns regarding the cryptocurrency landscape.
SOL, XRP, and LTC ETF Applications Withdrawn
The price of SOL Coin fell below $140 in response to Bitcoin’s decline, and XRP Coin lost its $2.2 support, potentially targeting the $2.08 support level. CoinShares has opted to retract their applications for XRP ETF, Solana Staking ETF, and LTC ETF. This decision aligns with the company’s aim to focus on opportunities offering higher margins, as they prepare for a U.S. public offering. Despite the pullback, major approvals for assets like XRP and SOL are in place, and others are awaiting clearance.
Even giants like Fidelity are participating, underscoring the significance of the competition. The fierce rivalry prompts CoinShares to reassess and formulate a distinctive strategy for differentiation in the market.
CoinShares also plans to close the Bitcoin futures leveraged ETF (BTFX.O). The company’s objective over the next 12-18 months is to launch thematic baskets and strategic products combining cryptocurrencies with other assets. As a company with a decade-long focus on cryptocurrencies, managing $10 billion worth of assets, CoinShares holds a prominent position in the European Union’s crypto investment space.
Crypto ETFs in the Market
According to SoSoValue, XRP Coin ETFs, which began trading in November, have witnessed a net inflow of $643 million. While Canary tops with $336 million in net assets, Franklin emerges as a formidable competitor with substantial growth potential. With Bitwise and Grayscale also being significant players, CoinShares’ decision to step back is seen as a prudent move.
Particularly in the Solana sector, competition is intensified by Fidelity, one of the largest asset management companies. Bitwise stands as the largest provider of SOL ETFs in terms of asset size.
On the XRP front, Canary, with its $1.1 million assets, reinforces CoinShares’ strategic decision to abstain from this particular competition. These calculated moves demonstrate CoinShares’ endeavor to realign its focus for better market positioning.