Global X withdraws bitcoin ETF proposal

Global X filed to withdraw its proposed spot bitcoin ETF weeks after a slew of ETFs were approved by the Securities and Exchange Commission.

The proposed ETF was not the first of its kind filed by the firm. Back in 2021, Global X pursued a similar fund but was met with resistance from the SEC.

Global X first filed its proposal back in August, but — like other applicants — a decision on the bitcoin ETF was delayed by the SEC. In January, the SEC issued a slew of ETF decisions but Global X was notably absent.

Read more: Bitcoin ETF Tracker

Global X didn’t immediately return a request for comment.

The firm wasn’t on the final list of potential ETFs earlier this month after it failed to file updated documentation alongside other potential ETF issuers.

Global X wasn’t the only one of the bitcoin ETF hopefuls that failed to make it across the finish line. Pando Asset Management joined the race back in December and has yet to receive approval for its proposed spot bitcoin ETF.

Similarly, 7RCC filed for a spot bitcoin ETF that would also hold carbon credit futures contracts. The proposal, filed in December, has yet to receive regulatory approval.

After receiving approval, nearly a dozen bitcoin ETFs launched earlier this month. The funds — which include Grayscale, BlackRock and Fidelity — have seen billions in outflows, mostly from GBTC.

JPMorgan analysts, however, believe that GBTC’s outflows are slowing.

“As we’ve been seeing transaction volumes slowing this past week, we think we are perhaps seeing indication of the hype around these ETFs abating and entering a perhaps more normalized flow environment,” analysts led by Kenneth Worthington said in a note Monday.

Outside of flows, the group has remained pretty competitive with a majority of the funds offering waivers for fees for a set amount of time or assets. On Monday, Invesco Galaxy — which offers a six-month or $5 billion in assets waiver — announced that it was cutting its fee to 0.25% from 0.39%.

Aside from Grayscale — which has a 1.5% fee — the group has very low fees ranging from 0.19% to 0.30%.

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