Global X Withdraws Application
Global X has officially withdrawn its application for a spot in Bitcoin ETF, according to an SEC filing. The initial application was submitted in August 2023, and despite two extensions for consideration, the exchange decided to withdraw the proposal on January 26. Global X had approximately $51 billion in assets under management in its ETFs worldwide as of December 2023. Bloomberg Intelligence ETF analyst James Seyffart commented that the withdrawal was not surprising, as it was already known they were no longer in contention since early December.
Spot Bitcoin Approvals in the Spotlight
The SEC recently approved 11 spot Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust and Grayscale Bitcoin Trust. This marked a significant step forward for the digital asset industry. Speculation has now arisen regarding the potential approval of spot Ethereum exchange-traded products. The SEC has extended deadlines for proposals from BlackRock and Grayscale, with final decisions expected in May. Despite outflows from the Grayscale Bitcoin Trust following its conversion to an ETF, there were net inflows across all spot Bitcoin ETFs approved by the SEC on January 10. Attention is now on the possibility of a spot Ethereum ETF, with firms like Fidelity and BlackRock submitting applications.
Hot Take: The Future of Crypto ETFs
The approval of spot Bitcoin ETFs by the SEC has opened up new possibilities for the crypto market. While there is optimism about the potential approval of spot Ethereum ETFs, there is still uncertainty surrounding regulatory decisions. Experts have varying opinions on the likelihood of approval, with some predicting a high chance by May and others expressing more conservative estimates. The evolving nature of this sector makes it crucial to closely monitor regulatory developments. The crypto community eagerly awaits the SEC’s final decisions on pending spot Ethereum applications, which will further shape the future of crypto ETFs.
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