Global X, previously a key player in the race for a spot bitcoin exchange-traded fund (ETF), has recently pulled back its application, a move confirmed by a January 30 notice from Cboe BZX Exchange. This could-have-been fund, now off the table, marks a significant moment in the cryptocurrency market.
The recent filing indicates Cboe BZX Exchange’s decision to withdraw the proposed rule change, which would have allowed trading shares in what was to be Global X’s groundbreaking spot bitcoin ETF. The Securities and Exchange Commission (SEC) had previously delayed its decision on this application twice, before the exchange’s final withdrawal on January 26.
Global X’s journey with the spot bitcoin ETF began back in July 2021, with a refile in August 2023, showcasing their persistent interest in the field. However, their exit, just three weeks after eleven other issuers successfully launched their ETFs on January 11, raises eyebrows.
Leading this new wave of ETFs is BlackRock’s iShares Bitcoin Trust (IBIT), which has seen an impressive inflow of over $2.6 billion within just 13 days of trading. Close behind is Fidelity’s Wise Origin Bitcoin Fund (FBTC), contributing significantly to the overall ETF market influx.
Despite these successes, the ETF market still feels the impact of high outflows from the Grayscale Bitcoin Trust (GBTC), which has witnessed about $5.4 billion in outflows since its inception. This contrasting scenario in the crypto ETF landscape highlights the dynamic and evolving nature of the market.
As the Bitcoin price hovers around $44K, the ETF market experiences its first net inflows in a week, a promising sign for investors and market analysts alike.