CoinShares withdraws three encryption ETF applications, with a $1.2 billion merger imminent. Is it time to change tracks?

[Chain News] European cryptocurrency asset management firm CoinShares has been quite active recently—first, it submitted a withdrawal application to the SEC, withdrawing the registration for XRP, Solana staking, and Litecoin Spot ETF, none of which have been sold yet. At the same time, they also decided to shut down the leveraged Bitcoin futures ETF (code BTFX).

But retreat is not the goal. CoinShares is busy merging with NASDAQ-listed Vine Hill Capital through a SPAC deal, with a transaction size of about $1.2 billion, planned to be finalized within this year. CEO Jean-Marie Mognetti stated frankly: in the market for single-coin encryption ETFs, giants like BlackRock, Fidelity, and Grayscale dominate, making it very difficult to differentiate, and the profit margins are very slim.

So they changed their approach. In the next year to year and a half, CoinShares will focus its efforts on three directions: encryption equity vehicles, thematic basket products, and active management strategies. It seems they are trying to step out of the red sea of single coin ETFs and look for more imaginative tracks.