Global X, a themed ETF publisher with $42 billion in 108 funds, postponed its spot bitcoin ETF debut as the industry congested and inflows slowed. The CBOE BZX Exchange, where the fund would have listed, stated its withdrawal on Jan. 30.
Despite seeking SEC clearance for its Global X Bitcoin Trust in 2021, it was not one of the 11 spot bitcoin ETFs that began trading Jan. 11, more than a decade after the initial application was submitted. The funds immediately attracted billions of investor dollars, but excitement has cooled and fresh money has halted.
Leading and following businesses are emerging, with the largest and most established enterprises making the most money. Bloomberg data shows that the iShares Bitcoin ETF (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) had $2.8 billion and $2.2 billion in assets under management as of Jan. 31.
Global X withdraws Spot Bitcoin ETF New York-based Global X head of product development Adam Sze emailed that a spot bitcoin ETF, as authorized, “is not a current priority for the business.”
He said that bitcoin ETFs are like “physical commodity fund” investments, not company-focused. “Historically, we have not focused on 33 Act product offerings.” Still, the business is “committed to digital assets” and has “digital assets strategies in the pipeline that address investor priorities, such as managing volatility, as opposed to a pure buy and hold bitcoin strategy
Global X's largest fund is the $7.9 billion NASDAQ 100 Covered Call ETF.
Bitcoin ETF Launch On Jan. 11, 11 businesses debuted spot bitcoin ETFs, but the contest has been intense. Before launching, organizations scrambled to establish authorized participant (AP) agreements, obtain fund seeding, and negotiate in-kind versus cash creations with the SEC.
Experts and issuers noted several logistical processes and the natural rivalry of over ten businesses launching identical funds on the same day might be impediments to entry for certain firms.