XRP News Today: CoinShares Exits XRP ETF Race as Market Consolidates Around Giants

CoinShares' sudden withdrawal of its XRP, Solana, and Litecoin ETF applications in the U.S. has sent ripples through the crypto market, signaling a strategic recalibration by one of Europe's largest digital-asset managers. The firm cited an "overcrowded" U.S. ETF landscape dominated by institutional giants like BlackRock and Fidelity, which now capture over 90% of inflows, leaving little room for mid-tier issuers to compete profitably according to The Currency Analytics. This move comes as XRP ETFs have already attracted $666.61 million in cumulative inflows since mid-November, driven by institutional demand for exposure to Ripple's asset according to Benzinga.

The decision reflects broader challenges in the U.S. crypto ETF market, where fee compression and intense competition have eroded margins. CoinShares' CEO, Jean-Marie Mognetti, emphasized that the market's consolidation has made it "structurally unfair" for smaller players to gain traction, particularly in single-asset ETFs according to The Currency Analytics. This aligns with the firm's broader strategy to pivot toward higher-margin products, including thematic crypto baskets and actively managed strategies that blend digital assets with traditional markets according to OKX. Such a shift aims to differentiate CoinShares from competitors while avoiding direct clashes with dominant ETF issuers.

XRP's rising institutional demand is reflected in strong ETF inflows and market adoption. For XRP, the withdrawal could have mixed implications. On one hand, the exit of a major player like CoinShares may reduce short-term competition for market share among ETF providers. However, the asset has already seen robust institutional adoption, with five XRP ETFs-including offerings from Grayscale, Bitwise, and Canary Capital-launching in late 2025 according to Benzinga. These products have collectively drawn over $870 million in inflows, underscoring XRP's appeal amid regulatory clarity following the SEC's long-standing legal battle with Ripple according to XRP Right Now. Analysts note that the asset's price action, which surged 12% in late November, has been buoyed by ETF-related demand despite broader crypto market volatility according to Benzinga.

The timing of CoinShares' exit also raises speculation about larger players entering the XRP ETF arena. Rumors suggest BlackRock and Fidelity are preparing their own XRP ETF filings, a move that could further consolidate market share among institutional heavyweights according to XRP Right Now. Such a scenario might exacerbate supply constraints for XRP, as ETFs require physical token holdings to back shares. With XRP's circulating supply already under pressure from declining exchange balances and long-term wallet holdings hitting record highs, analysts warn that large-scale ETF inflows could trigger significant price revaluations according to XRP Right Now.

CoinShares' pivot away from single-asset ETFs highlights a broader industry trend: the U.S. crypto fund market is maturing into a domain where brand influence and scale dictate success. While this may limit product diversity, it also creates opportunities for innovation in thematic and actively managed strategies. CoinShares plans to leverage its European expertise-where it holds a 34% market share in digital-asset ETPs-to develop products that cater to evolving investor demand for diversified crypto exposure according to OKX.

The firm's decision to withdraw its XRP ETF application does not signal a retreat from the U.S. market but rather a strategic shift. By focusing on higher-margin offerings and avoiding direct competition with industry leaders, CoinShares aims to position itself for long-term growth in a rapidly consolidating sector. For XRP, the immediate outlook remains positive, with institutional demand and regulatory clarity providing tailwinds-even as the ETF landscape becomes increasingly dominated by a handful of titans.