Global X Draws Out Spot Bitcoin ETF Application
The exchange-traded fund provider is the first to pull out its application for a United States spot Bitcoin ETF since the approval of several funds last month.
Global X, an exchange-traded fund (ETF), has pulled out its application for a United States spot Bitcoin exchange-traded fund. According to a 30th January filing by the Securities and Exchange Commission (SEC), Cboe BZX Exchange filed a withdrawal notice on January 26.
Global X Exits Race for US Spot Bitcoin ETF
Global X initially applied for a United States Bitcoin exchange-traded fund in 2021 and became the first company to have desert its plans after the SEC ratified 11 applications. Funds from Fidelity, BlackRock, and Wisdom Tree were among the ETFs ratified for trading in the United States.
In an X (formerly Twitter) post, James Seyffart, an ETF analyst, claimed that news concerning Global X’s withdrawal was ‘not shocking.’ He also stated that ‘they were aware of the situation since at least early December.’
After the ratification of several Bitcoin exchange-traded funds, Bitcoin’s price plummeted as Grayscale Bitcoin Trust (GBTC) investors capitalized on the chance to cash out. CoinShares, a digital asset manager, believes that outflows from Grayscale seem to be moving slowly, while the United States spot Bitcoin exchange-traded fund experienced inflows of more than $5B since its unveiling on January 11.
Grayscale Outflows Hit $2.2 Billion
According to the CoinShares report, Grayscale’s outflows amounted to $2.2B, despite data showing outflows are starting to reduce amid a continuous reduction in the daily total. Currently, Bitcoin is trading at nearly $42600, down 1.8% on the day. However, it is up 6% on the week.
The United States Federal Reserve revealed the findings of its initial 2024 interest meeting on January 31. Bitcoin has begun experiencing an increase in price after hopes that Jerome Powell, the chairman, will reveal the central banking system’s intention to maintain rates. Additionally, there are indicators that the Federal Open Market Committee (FOMC) will reduce rates later.
Generally, Bitcoin seems to acquire buoyancy following a reduction in rates by the Fed.
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