CoinShares has decided to withdraw its application for a Solana staking ETF in the United States, indicating a significant strategic shift. This decision comes at a time when most new funds focused on SOL are experiencing steady inflows. The firm formally requested the withdrawal of its S-1 filing, concluding a process that began months ago and which left CoinShares outside the group of issuers that launched in November.
The withdrawal is occurring during a period characterized by rapid growth in Solana-based products, increasing interest in ETFs, and a volatile altcoin market that continues to influence issuer strategies. CoinShares last updated its Solana staking ETF application on September 26, but ultimately opted not to proceed, leaving seven SOL ETFs currently in operation within the US market.
Despite this pullback, CoinShares maintains several other filings at various stages. The withdrawn Solana product never reached the trading phase and required a reevaluation of its structure. This move may suggest a redesigned strategy for gaining exposure to Solana, particularly as staking ETFs necessitate the selection of reliable validators to ensure consistent yields.
CoinShares is still actively offering a Solana-based staking ETP on the Frankfurt exchange. The asset manager oversees more than $10 billion in assets, capturing approximately 34% of Europe”s crypto ETP market. Thus, this retreat does not necessarily indicate a waning interest in Solana but could signal a broader trend toward aligning new products with shifting regulatory and market conditions.
In addition to the Solana ETF withdrawal, CoinShares has also halted plans for ETFs related to XRP and Litecoin. Recent market conditions have deteriorated, leading to uncertainty surrounding demand for altcoin products. Furthermore, CoinShares is gearing up for a merger with Vine Hill Capital, prompting a reassessment of its priorities before the anticipated US listing. The withdrawal of the XRP ETF has left five issuers in the competition to introduce the next product, with 21Shares expected to commence trading on November 29.
Despite the ETF withdrawal, Solana”s price has shown resilience, trading at $137.83 after a 3.11% decline for the day, while achieving weekly gains of 8.32%. The circulating supply stands at 560 million SOL, situating its market cap near $77.1 billion. Analysts are observing a potential upswing, with indications of improving momentum. Some experts note an 80% upside potential, bolstered by rising transaction volumes, robust user engagement, heightened interest in futures, and $613 million in spot SOL ETF inflows.
Market analysts have also pointed out that SOL has managed to break above a significant trendline, accompanied by a strong bullish candle following an RSI bullish divergence. Resistance levels are currently firm at $152 and $170. Moreover, sustaining levels above the reclaimed trendline could facilitate a recovery towards the September peak near $253.
