XRP News Today: Institutional Takeover Forces CoinShares to Pivot Crypto Strategy

CoinShares, a leading digital asset manager with $10 billion in assets under management (AUM), has abruptly withdrawn its plans to launch U.S. exchange-traded funds (ETFs) for XRP, Solana, and Litecoin, citing an increasingly crowded market dominated by institutional heavyweights. The decision, disclosed in a November 28 filing with the Securities and Exchange Commission (SEC), marks a strategic pivot for the firm as it shifts focus to higher-margin products amid fierce competition from traditional finance giants.

The move underscores the challenges faced by smaller crypto issuers in the U.S., where BlackRock, Fidelity, and Bitwise now control over 90% of crypto ETF inflows. CoinShares CEO Jean-Marie Mognetti stated the firm is "adjusting its direction" due to the "highly crowded" market, which leaves smaller players at a disadvantage. Institutional dominance has intensified as spot Bitcoin ETFs, led by BlackRock's IBIT, have become the firm's top revenue source, generating $245 million in annual fees and nearing $100 billion in allocations.

CoinShares' withdrawal follows a broader trend of market consolidation. Despite rising investor interest in XRP and Solana-based funds-XRP ETFs alone saw $179.6 million in inflows this week-the firm concluded that competing with established players would yield "low margins and slow growth." Alongside the ETF cancellations, CoinShares is winding down its leveraged Bitcoin futures ETF, BTFX, and redirecting resources to thematic crypto baskets and active strategies, which Mognetti described as "innovative products" with higher potential for differentiation according to company statements.

The decision aligns with recent developments in the crypto derivatives and ETF landscape. CME Group, for instance, announced plans to launch spot-quoted futures for XRP and Solana on December 15, a move designed to cater to institutional demand for regulated trading tools. The contracts, which track real-time spot prices and require lower margins, reflect growing institutional appetite for altcoins, with XRP and Solana ETFs collectively attracting over $300 million in inflows this month.

Meanwhile, the competitive pressures facing CoinShares highlight the scale of traditional finance's encroachment into crypto. BlackRock's IBIT, the fastest ETF in history to reach $70 billion in assets, now holds over 3% of Bitcoin's total supply, further entrenching the firm's dominance. Smaller players, however, are not entirely sidelined. XRP's ETF inflows have surged past Solana's in recent weeks, driven by aggressive fee waivers from issuers like Grayscale and Franklin Templeton, which temporarily reduced costs to 0.19% for institutional investors.

CoinShares' strategic recalibration signals a broader industry shift. While the firm remains committed to the U.S. market, it is prioritizing innovation over direct competition with industry titans. Mognetti emphasized that the firm's new focus on thematic and active strategies-rather than single-asset ETFs-positions it to "generate sustainable shareholder value" in a landscape where "innovation is not friendly" to newcomers according to company filings.