Global X Withdraws Application for U.S. Bitcoin ETF
Exchange-traded fund provider Global X has decided to withdraw its application for a U.S. spot Bitcoin ETF, according to a filing from the U.S. Securities and Exchange Commission (SEC). The notice of withdrawal was filed by Cboe BZX exchange on January 26th.
This move makes Global X the first firm to abandon its plans after the SEC’s recent approval of 11 Bitcoin ETF applications. Notably, BlackRock, Fidelity, and WisdomTree are among the firms whose ETFs were approved for trading in the U.S.
Global X’s Withdrawal Not Surprising
Bloomberg Intelligence ETF analyst James Seyffart stated on Twitter that Global X’s withdrawal was “not surprising.” He mentioned that they had been out of the race since at least early December.
Bitcoin Price Plunges After ETF Approval
The approval of multiple Bitcoin ETFs led to a decline in the price of Bitcoin as investors in the Grayscale Bitcoin Trust (GBTC) took the opportunity to sell their holdings. However, CoinShares reported that outflows from Grayscale are starting to slow down while U.S. spot Bitcoin ETFs have seen inflows of over $5 billion since their launch on January 11th.
Bitcoin Price Update and Fed Announcement
As per CoinGecko data, BTC is currently trading at around $42,600, down 1.8% on the day but up over 6% on the week.
The U.S. Federal Reserve is expected to announce the results of its first 2024 interest rate meeting later today. There is speculation that Chairman Jerome Powell may announce no change in rates and offer hints about potential rate cuts later this year. Bitcoin tends to react positively when the Fed lowers rates.
Hot Take: Global X’s Withdrawal Highlights the Competitive Nature of the Bitcoin ETF Race
The withdrawal of Global X’s application for a U.S. spot Bitcoin ETF emphasizes the intense competition among firms in this space. While some companies have successfully obtained approval, others are opting to withdraw their applications due to various factors.
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