Amidst the cryptocurrency investment landscape, Cboe BZX Exchange has retracted its application to list and trade shares from the Global X Bitcoin Trust. The move follows the SEC’s rejection of the proposed rule change required for the listing of the trust’s ETF shares. This development contrasts with the SEC’s recent approval of spot Bitcoin ETF listings on U.S. exchanges, indicating evolving regulatory dynamics in the crypto investment arena.
The withdrawal of the application by the Cboe BZX exchange.
The application withdrawal follows the SEC’s historic approval of spot Bitcoin ETFs, signaling a major change in its stance on cryptocurrency investment products. This move enables investors to access the leading cryptocurrency through regulated ETFs, garnering widespread excitement in both the cryptocurrency community and investment sector.
Speculative forecasts
Following the approval of spot Bitcoin ETFs, there’s anticipation in the market regarding the SEC potentially greenlighting spot Ether (ETH) exchange-traded products. This could facilitate investor access to Ethereum, the second-largest cryptocurrency by market capitalization, via similar investment avenues. Deadline extensions by the SEC for offerings from prominent asset managers like BlackRock and Grayscale hint at final decisions expected in May of this year.
Impact on the market
Despite apprehensions regarding the potential influence of spot Bitcoin ETFs on current investment offerings, data reveals a varied response from investors. As of January 26th, 2024, the Grayscale Bitcoin Trust experienced around $5 billion in outflows subsequent to its transition into an ETF. Conversely, there were significant net inflows of $759 million across all approved spot Bitcoin ETFs on January 10th, 2024. This reflects diverse investor sentiments and approaches amidst the changing cryptocurrency investment environment.
