The Cboe BZX exchange has decided to withdraw its proposed rule change application submitted to the U.S. Securities and Exchange Commission (SEC). This proposed rule change aimed at allowing the exchange to list Global X spot Bitcoin shares for Exchange Traded Funds (ETFs). The SEC, in a notice on January 30, disclosed that Cboe BZX formally withdrew its application on January 26. Initially filed in August 2023, the application sought approval to list and trade shares of the Global X Bitcoin Trust. The SEC had extended its consideration of the application twice, first in September and then in November.
Approximately three weeks earlier, the SEC granted its first official approval for a spot Bitcoin ETF to be listed on a U.S. exchange. As of the time of reaching out to Cboe and Global X for comments, there had been no response. The withdrawal of the application is noteworthy in the context of the recent approval and speculation surrounding the potential approval of a spot Ethereum ETF. The SEC has delayed the deadline for asset managers BlackRock and Grayscale to launch such products, with a final decision expected in May.
Market observers are closely monitoring the SEC's decisions on cryptocurrency ETFs, as these approvals signal a growing acceptance of digital assets in traditional financial markets. While the Grayscale Bitcoin Trust experienced approximately $5 billion in outflows after converting to an ETF, net inflows into all SEC-approved spot Bitcoin ETFs amounted to $759 million on January 10. The evolving landscape of cryptocurrency investment products is reshaping the industry, with increased interest from institutional and retail investors seeking exposure to digital assets through regulated and tradable instruments.
