In a surprising turn of events, the Cboe BZX Exchange has decided to withdraw its application for a proposed rule change with the United States Securities and Exchange Commission (SEC), a move that could have paved the exchange’s way for listing shares of Global X’s spot Bitcoin Exchange-Traded Fund (ETF).
The SEC, in a notice on January 30, officially announced the withdrawal of Cboe BZX’s application for trading shares of the Global X Bitcoin Trust. This submission, which was initially filed on August 4, 2023, sought approval for a rule change aimed at facilitating the listing and trading of shares associated with the Global X Bitcoin Trust.
Global X Bitcoin ETF: Twice Extension by the SEC
The Commission opened the proposal for public commentary by publishing it in the Federal Register on August 23, 2023. Following this, on September 26, 2023, the Commission opted to extend the period allocated for their evaluation of the proposed rule change, indicating a need for additional time to deliberate on the matter.
Subsequently, on November 17, 2023, the Commission took another step by initiating formal proceedings, signaling its commitment to a thorough examination to determine whether to grant approval of the proposed rule change or not.
Despite the double extension offered by the SEC in September and November, the exchange chose to pull the proposal on January 26, marking the end of this particular chapter in its the Bitcoin ETF saga.
Global X, the brain behind the Bitcoin Trust, had initially submitted the proposal in August, facing the same delays as other spot ETF applicants. However, the firm failed to make the final list of potential ETFs earlier in the month due to its failure to submit updated documentation alongside other aspiring ETF issuers. As a result, the approved list of spot bitcoin ETFs on January 10 did not hold Global X’s ETF.
Firms Facing Setbacks
Global X isn’t the sole contender facing setbacks in the race for a Bitcoin ETF. Pando Asset Management, which entered the bitcoin ETF arena in December 2023, is still awaiting approval for its proposed spot Bitcoin ETF.
Similarly, 7RCC’s December filing for a spot Bitcoin ETF, incorporating 80% Bitcoin and 20% carbon credit futures, is yet to secure regulatory approval.
Massive Competition Among ETF Issuers
This development comes on the heels of the SEC’s recent approval of spot Bitcoin ETF listings on U.S. exchanges, marking a historic moment for the digital asset market. Nearly a dozen Bitcoin ETFs, including offerings from Grayscale, BlackRock, and Fidelity, launched earlier this month. However, these funds have witnessed substantial net outflows, primarily from Grayscale Bitcoin Trust (GBTC).
While data as of January 26 indicated around $5 billion in outflows from the Grayscale Bitcoin Trust post its conversion to an ETF, there were $759 million in net inflows across all spot Bitcoin ETFs approved by the SEC.
Despite the outflows, the competition among these ETFs remains fierce, with many funds offering fee waivers for a specified time or assets. In a recent move, Invesco Galaxy, which provides a six-month or $5 billion in asset waiver, announced a reduction in its fee from 0.39% to 0.25%.
