CoinShares, a prominent digital asset manager with over $6 billion in assets under management, has withdrawn its application for a Solana staking exchange-traded fund (ETF) to the U.S. Securities and Exchange Commission (SEC). This strategic move reflects growing industry caution around regulatory hurdles and competitive pressure in the cryptocurrency sector. CoinShares cited ‘incomplete structuring’ as the reason for the withdrawal in SEC filings, highlighting that no shares were issued or sold during this process. 2024 saw a significant push for Bitcoin and Ethereum ETFs launched. 2025 has been a pivotal year for digital asset regulation, where altcoin staking ETFs face increased scrutiny from regulatory bodies.
This decision aligns with CoinShares’ strategic shift towards pursuing more profitable sectors within the digital asset industry. The withdrawal underscores that the path forward may be altered by SEC-related challenges and competition in this space.
In addition to regulatory hurdles, market dynamics also influenced CoinShares’ decision. Solana’s market cap remains significant, reaching approximately $76.34 billion, with a circulating supply approaching 559.53 million tokens. The 24-hour trading volume for SOL has declined, but Solana saw a week-over-week increase of 6.11%. However, experts from Coincu’s research team believe the withdrawal is indicative of broader challenges in regulating staking-focused ETFs.
This decision provides valuable insight into the complex regulatory landscape surrounding crypto ETFs and highlights that strategic decisions are being made to prioritize profitability rather than solely pursuing emerging ETF avenues.