In a surprise move, Global This decision comes on the heels of the SEC's recent approval of 11 Bitcoin ETFs, highlighting the complexities and hurdles involved in securing regulatory approval for such investment vehicles.
The Regulatory Odyssey of Global X and the Spot Bitcoin ETF
The journey toward gaining approval for spot Bitcoin ETFs has been fraught with challenges. Initially, the SEC expressed concerns about market manipulation, the absence of monitoring sharing agreements, and monitoring Bitcoin spot markets for potential fraud. Global
GlobalX is not alone in facing setbacks; Other players like Pando Asset Management and 7RCC are also awaiting approval for spot Bitcoin ETFs. Despite the green light for 11 other funds, the industry saw significant outflows from licensed ETFs such as Bitwise, Grayscale and BlackRock, which impacted the price of Bitcoin due to selling pressure in the market, especially in the case of GBTC.
Importance of Spot Bitcoin ETFs and Market Dynamics
The Instant Bitcoin ETF provides investors with a way to track Bitcoin price fluctuations without having to actually own the cryptocurrency. The ETF itself holds Bitcoin, providing a more accessible entry point for traditional investors. It is worth noting that the head of digital assets at Goldman Sachs, Matthew McDermott, emphasizes the cost-effectiveness of investing in Bitcoin through these ETFs compared to direct ownership of cryptocurrencies. Goldman Sachs has an optimistic view on the market impact following the recent approvals of a Bitcoin exchange-traded fund, highlighting the evolving landscape for investing in cryptocurrencies.
