Asset manager CoinShares has withdrawn its application with U.S. regulators for a staked Solana exchange-traded fund.
According to the filing, the structuring deal that underpinned the proposed fund was never completed.
The withdrawal notice stated: “The Registration Statement sought to register shares to be issued in connection with a transaction that was ultimately not effectuated. No shares were sold, or will be sold, pursuant to the above-mentioned Registration Statement.”
The decision brings an end to CoinShares’ plan to enter the rapidly growing category of staked Solana investment products.
Competition Grows in Staked Solana ETF Market
The staked Solana ETF market has expanded quickly this year.
The first U.S.-listed staked SOL ETF launched in June under REX-Osprey, and Bitwise followed in October with a competing product.
Bitwise’s ETF began trading with nearly $223 million in assets on its first day, amounting to about half of the value that the REX-Osprey fund had accumulated over several months.
Despite strong investor participation in these ETFs, Solana’s market price has not kept pace.
The token has remained in a downward trend since surpassing $250 in September.
Capital Flows Remain Strong Despite Weak Price Action
November saw more than $369 million flow into Solana ETFs as investors targeted the 5–7% yield typical of staked SOL products.
This investor enthusiasm contrasted sharply with trends seen in Bitcoin and Ethereum ETFs, which recorded heavy outflows over the same period.
Even during periods of significant volatility, the Solana ETFs continued to log multiple days of inflows.
Analysts had previously forecast that such sustained inflows could push SOL toward $400.
Those projections have since been revised downward as market conditions changed, with some analysts now expecting difficulty in reclaiming the $150 level.
SOL Price Hits Multi-Month Low
Solana’s price performance has remained weak even as institutional inflows rise.
The token fell to a five-month low of around $120 in November.
This represents a 60% decline from the all-time high of roughly $295 reached in January 2025.
Solana’s surge early in the year was driven primarily by the launch of the Official Trump memecoin, which fuelled trading across Solana-based meme tokens.
ETF Momentum Continues Despite Price Pressure
Even with the downturn in price, investor appetite for staked Solana ETFs remains unusually strong.
The contrast between heavy ETF inflows and declining token prices highlights the complexity of current market sentiment.
Investors continue to value the yield-generating nature of staked products, even as broader crypto conditions remain unstable.
CoinShares’ decision to step back from its ETF proposal adds another twist to the evolving landscape.
Staked Solana products are still attracting capital, but price action suggests that market demand alone is not enough to maintain the token’s previous momentum.
More developments in the ETF sector — or in Solana’s broader ecosystem — may determine whether the asset can regain its earlier strength.
