XRP News Today: CoinShares Withdraws from XRP ETF Competition as Major Players Dominate the Market

CoinShares Withdraws U.S. ETF Applications Amid Shifting Crypto Landscape

CoinShares, one of Europe's leading digital asset managers, has unexpectedly pulled its applications for XRP, Solana, and Litecoin exchange-traded funds (ETFs) in the United States. This decision has reverberated throughout the cryptocurrency sector, highlighting a significant strategic shift for the company.

The firm attributed its withdrawal to the highly saturated U.S. ETF market, which is largely controlled by major institutional players such as BlackRock and Fidelity. These industry giants now account for more than 90% of all ETF inflows, making it increasingly difficult for mid-sized firms to compete profitably, as reported by The Currency Analytics. Despite the challenging environment, XRP ETFs have already accumulated $666.61 million in inflows since mid-November, fueled by strong institutional interest in Ripple's digital asset, according to Benzinga.

Challenges Facing Smaller ETF Issuers

This move underscores the broader difficulties in the U.S. crypto ETF sector, where fierce competition and shrinking fees have squeezed profit margins. Jean-Marie Mognetti, CEO of CoinShares, noted that the market's consolidation has created an environment where smaller issuers struggle to gain a foothold, especially with single-asset ETFs, as highlighted by The Currency Analytics. In response, CoinShares is redirecting its focus toward higher-margin products, such as diversified crypto baskets and actively managed funds that combine digital assets with traditional investments, according to OKX. This new direction is designed to set CoinShares apart from its competitors and avoid direct competition with the largest ETF providers.

Implications for XRP and the Broader Market

The growing institutional appetite for XRP is evident in the strong inflows and widespread adoption of related ETFs. While CoinShares' exit may temporarily reduce competition among ETF issuers, XRP has already achieved significant institutional traction. In late 2025, five XRP ETFs—including those from Grayscale, Bitwise, and Canary Capital—were launched, collectively attracting over $870 million in investments, as reported by Benzinga. This surge in inflows reflects XRP's continued appeal, especially after regulatory uncertainties were resolved following the SEC's legal dispute with Ripple, according to XRP Right Now. Analysts also point out that XRP's price climbed 12% in late November, buoyed by ETF-driven demand despite overall market volatility, as noted by Benzinga.

Potential Entry of Major Players

CoinShares' withdrawal has sparked speculation that larger institutions may soon enter the XRP ETF space. There are rumors that BlackRock and Fidelity are preparing their own XRP ETF filings, which could further concentrate market share among the biggest players, according to XRP Right Now. If these giants move forward, it could intensify supply pressures on XRP, since ETFs require actual token holdings to back their shares. With XRP's circulating supply already constrained by declining exchange balances and record levels of long-term holdings, analysts caution that substantial ETF inflows could lead to notable price increases, as reported by XRP Right Now.

Strategic Shift and Future Outlook

CoinShares' decision to step back from single-asset ETFs reflects a broader trend in the industry: the U.S. crypto fund market is evolving into a space where brand strength and scale are key to success. While this may reduce the variety of available products, it also opens the door for innovation in thematic and actively managed investment strategies. CoinShares intends to leverage its strong position in Europe—where it commands a 34% share of the digital asset ETP market—to create new offerings that meet the changing needs of investors seeking diversified crypto exposure, according to OKX.

Rather than signaling a retreat from the U.S., CoinShares' withdrawal marks a calculated pivot. By concentrating on higher-margin products and steering clear of direct competition with industry behemoths, the company aims to secure long-term growth in an increasingly consolidated market. For XRP, the near-term outlook remains optimistic, supported by ongoing institutional demand and greater regulatory certainty, even as the ETF landscape becomes dominated by a select few major players.