Global X Terminates Spot Bitcoin ETF Pursuit

Global X sets an undesired record in becoming the first applicant for the spot Bitcoin exchange-traded fund (ETF) to withdraw a bid. The withdrawal surfaced in a Tuesday, January 30 filing from the Securities and Exchange Commission (SEC) acknowledging that Cboe BZX exchanged the withdrawal notice submitted on Friday, January 26. 

Global X Ending Spot Bitcoin ETF Pursuit

Global X had earlier submitted a bid for the Bitcoin ETF in 2021. The withdrawal occurs after the approval of 11 ETFs by the SEC on January 10 among them Ark Invest, BlackRock, BitWise, Fidelity and WisdomTree.

Bloomberg lead ETF analyst James Seyffart labeled the withdrawal as expected indicating that Global X had exited the race back in early December. 

The withdrawal coincided with the Bitcoin price plummeting as investors within the Grayscale Bitcoin Trust (GBTC) cashed out. The move resulted in huge outflows in Grayscale. 

JPMorgan in a last week report indicated that the GBTC outflows were slowing a likely factor in propelling the Bitcoin price recovery. A subsequent report by European digital asset manager CoinShares echoed the sentiment.

US Spot Bitcoin ETFs Inflows Hit $5B

CoinShares indicated that spot Bitcoin ETFs are responsible for $5 billion in inflows since their unveiling on January 11. 

The weekly report by CoinShares indicated that Grayscale outflows hit $2.2 billion. The data suggests outflows are subsiding as the daily total slipped to $192 million.

By press time, the Bitcoin price is yet to shake off the recent bloodbath. Bitcoin is exchanging hands in a range within $42,600 still 1.8% down in the day as per CoinGecko.