Solana News Today: CoinShares Abandons Altcoin ETFs as Traditional Finance Dominates Inflows

CoinShares, a leading crypto asset manager with $10 billion in assets under management, has abruptly withdrawn its applications for Solana (SOL), XRP, and Litecoin ETFs in the U.S., citing an oversaturated market dominated by traditional finance giants. The decision, revealed in a November 28 SEC filing, marks a strategic retreat as the firm reevaluates its approach to competing in a landscape where BlackRock, Fidelity, and Bitwise now control over 90% of crypto ETF inflows. CoinShares CEO Jean-Marie Mognetti emphasized that smaller issuers face insurmountable challenges in a market where innovation is stifled by entrenched players, prompting a pivot toward thematic crypto baskets and active strategies.

The move follows a turbulent period for altcoin ETFs. While Solana-based funds have attracted $570 million in net inflows since their October 28 launch, Bitcoin ETFs hemorrhaged $3.79 billion in November 2025, reflecting diverging investor sentiment. Solana's staking ETFs, offering 7% yields and lower fees, outperformed Bitcoin counterparts amid broader crypto market declines. Despite these gains, Solana's price dipped to $137.83 in mid-November-a 60% drop from its January 2025 peak-highlighting the gap between ETF inflows and token valuations.

Litecoin's ETF fared worse, recording zero net inflows for five consecutive days, with its $7.44 million in assets underscoring weak demand. Competing XRP and Solana ETFs, by contrast, saw $586 million and $570 million in inflows respectively, leaving Litecoin's product as an outlier. CoinShares' decision to abandon its Litecoin ETF aligns with broader market skepticism about the asset's competitiveness against smart contract platforms and Bitcoin's store-of-value narrative.

The firm's retreat from Solana staking ETFs also reflects structural challenges. Despite seven active SOL ETFs in the U.S., CoinShares' application was withdrawn due to unresolved structuring issues, with the SEC noting the fund's registration never materialized. Analysts suggest the firm may revisit Solana exposure through alternative structures, given its strong European ETP presence and 34% market share in crypto ETPs.

CoinShares' strategic shift is further amplified by its pending Nasdaq SPAC merger, which has prompted a reassessment of product priorities. The firm is now focusing on "innovative" offerings, including active strategies and thematic baskets, to differentiate itself in a crowded market. Meanwhile, rivals like 21Shares and REX-Osprey continue to expand their altcoin ETF portfolios, with 21Shares set to launch an XRP ETF on November 29.

The decision underscores the fragility of altcoin ETFs amid regulatory uncertainty and volatile crypto markets. While Solana ETFs have shown resilience, institutional outflows and price declines suggest investors remain cautious. CoinShares' exit from the race highlights the growing dominance of traditional finance in crypto investing, as smaller players seek alternative pathways to capture market share.