Global X Exits the Spot Bitcoin ETF Approval Race

ETF provider Global X, has pulled its application for a spot Bitcoin ETF, an SEC filing on Tuesday showed.

The CBOE BZX Exchange submitted a withdrawal notice for the Global X Bitcoin Trust on Jan. 26, around two weeks after the SEC approved 11 other spot Bitcoin ETFs.

Securing approval for these 11 funds was tough. At first, the SEC had concerns about market manipulation, lack of surveillance-sharing agreements, and monitoring Bitcoin spot markets for fraud.

After facing resistance from the SEC in its initial attempt to launch a spot bitcoin ETF in 2021, Global X faced further delays upon refiling in Aug. 2023.

Global X missed the final list of potential ETFs due to documentation issues, but it’s not the only one that came up short. Pando Asset Management and 7RCC are also waiting for approval for their spot bitcoin ETFs.

Global X didn’t return Cryptonews’ request for comment by press time.

GBTC Outflows are Slowing

The authorized ETFs, including Bitwise, Grayscale, and BlackRock, saw substantial outflows since they opened for trade. These outflows, especially from GBTC, affected Bitcoin’s price due to market selling pressure.

Analysts noted that outflows were mainly tied to factors like forced selling related to the FTX estate and profitable investor strategies tied to GBTC’s discount in the past two years.

But Bloomberg analyst James Seyffart pointed out that the daily outflows from GBTC fell to $191.7m on Monday. These outflows have been partially balanced by investments flowing into the recently launched spot ETFs.

Global X’s Bitcoin ETF Withdrawal ‘Not Surprising’

Seyffart also said that Global X’s withdrawal was unsurprising as “they were out of the race since at least early December but now its official.”

Official withdrawal request for @GlobalXETFs' #Bitcoin ETF. This is not surprising because we have known they were out of the race since at least early December but now its official. pic.twitter.com/1ghjh3O5Hw

— James Seyffart (@JSeyff) January 30, 2024

A spot Bitcoin ETF enables investors to track the price fluctuations of Bitcoin without needing to possess the cryptocurrency, as the ETF itself holds the Bitcoin.

Goldman Sachs’ head of digital assets, Mathew McDermott, pointed out that investing in Bitcoin through these ETFs is a more cost-efficient option compared to directly owning the crypto. He recently said Goldman has an “incredibly positive” view of the spot Bitcoin ETF approvals’ market impact.