Global X, the thematic-focused ETF issuer with $42 billion in 108 funds, pulled its plan to launch a spot bitcoin ETF as the field for the new fund shows signs of getting crowded and the pace of inflows slows. The CBOE BZX Exchange, where the fund would have listed, filed on Jan. 30 a notice to officially withdraw the fund.

While Global X sought approval for its Global X Bitcoin Trust back in 2021, it wasn’t among the 11 spot bitcoin ETFs that began trading Jan. 11, the day after the SEC approved them following more than a decade since the first spot bitcoin ETF application was submitted. While the funds quickly pulled in billions of investor cash, enthusiasm has cooled and the rate of new money coming in has slowed.

In the meantime, leaders and followers in the field are becoming apparent, with the largest, most established firms grabbing the most money. As of Jan. 31 the iShares Bitcoin ETF (IBIT) and the Fidelity Wise Origin Bitcoin Fund (FBTC) have gathered $2.8 billion and $2.2 billion in assets under management, respectively, since their Jan. 11 debut.

Global X Withdraws Spot Bitcoin ETF

New York-based Global X said in an emailed statement from Adam Sze, head of product development, that a spot bitcoin ETF as currently permitted, “is not a current priority for the business.” The current spot bitcoin ETFs are akin to “physical commodity fund” which isn’t a company focus, he wrote. “Historically, we have not focused on 33 Act product offerings.” Still, the company remains “committed to digital assets” with “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 biggest fund is the $7.9 billion Global X NASDAQ 100 Covered Call ETF (QYLD).

Spot Bitcoin ETF Launch
While 11 firms launched spot bitcoin ETF products on Jan. 11, the race to rollout a product has been competitive. Before launching, firms rushed to sign authorized participant (AP) agreements, find seeding for the fund, and work out details such as in-kind versus cash creations with the SEC. Experts and issuers said that many of the logistical steps could be barriers to entry for some firms, as well as the inherent competition that comes with over ten firms launching similar funds on the same day.