Global X, a former contender for a spot bitcoin exchange-traded fund (ETF), has withdrawn its application, according to a notice from Cboe BZX Exchange on January 30. The exchange could have listed the fund if Global X had proceeded with its application. The filing reveals that Cboe BZX Exchange is withdrawing its proposed rule change to list and trade shares of what would have been Global X’s spot bitcoin ETF. This decision comes after the Securities and Exchange Commission (SEC) had delayed its decision on the application twice before Global X officially withdrew on January 26.
Global X had initially filed for a spot bitcoin ETF in July 2021 and refiled in August 2023. However, the company has now decided to withdraw its application, indicating a change in its plans for entering the bitcoin ETF market.
This withdrawal comes three weeks after eleven other issuers successfully listed their ETFs on the market on January 11. Among them, BlackRock’s iShares Bitcoin Trust (IBIT) has emerged as the leader, attracting over $2.6 billion in total flows over just 13 days of trading. Fidelity’s Wise Origin Bitcoin Fund (FBTC) follows closely behind. In total, these ETFs have brought in nearly $250 million in capital.
However, the overall inflows into these ETFs are significantly lower than those of BlackRock and Fidelity due to the ongoing high outflows from Grayscale Bitcoin Trust (GBTC). Since its launch, GBTC has experienced outflows of nearly $5.4 billion. This suggests that investors are shifting their focus from GBTC to the newly listed ETFs.
The withdrawal of Global X’s application highlights the competitive nature of the bitcoin ETF market. With several issuers already successfully launching their ETFs, Global X may have reconsidered its strategy and decided to explore other opportunities in the crypto space.
As the market for bitcoin ETFs continues to evolve, it will be interesting to see how the competition unfolds and whether more issuers will enter the space. The success of BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund demonstrates the growing demand for bitcoin investment products. Investors are increasingly looking for regulated and accessible ways to gain exposure to the cryptocurrency market, and ETFs provide a convenient solution.
While Global X may have withdrawn its application for now, the company’s decision does not necessarily indicate a permanent exit from the bitcoin ETF race. As the market matures and regulatory clarity improves, we may see Global X and other issuers reenter the competition with revised strategies and offerings.
In conclusion, Global X’s withdrawal from the bitcoin ETF application highlights the dynamic nature of the market. With other issuers successfully launching their ETFs, Global X has decided to withdraw its application, potentially indicating a shift in its plans. The success of BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund demonstrates the growing demand for bitcoin investment products. While Global X’s withdrawal is significant, it does not rule out the possibility of the company reentering the race in the future.