Swiss asset manager enters Bitcoin ETF race
Pando Asset, a Swiss asset manager, has joined the competition for a spot Bitcoin exchange-traded fund (ETF) in the United States. The company submitted a Form S-1 to the Securities and Exchange Commission (SEC) for the Pando Asset Spot Bitcoin Trust. Like other ETF bids, the trust aims to track Bitcoin’s price and will use Coinbase as its custodian. Pando is now the 13th bidder in the race, which includes BlackRock, ARK Invest, and Grayscale.
Analyst raises questions about Pando’s late entry
Bloomberg ETF analyst Eric Balchunas raised concerns about Pando’s late entry into the race, questioning why they waited until now to submit their filing. Balchunas also expressed concerns about the implications if Pando’s ETF is approved alongside other filings on January 10. He and fellow analyst James Seyffart predict that all spot Bitcoin ETFs will be approved on that day. Seyffart doubts that Pando’s ETF will be ready to launch with the others but acknowledged that unexpected things can happen.
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BlackRock meets with SEC to discuss ETF bid
BlackRock and Invesco executives met with the SEC to discuss their respective ETF bids. BlackRock presented a revision to its redemption model to address previous concerns raised by the SEC regarding balance sheet impacts and risks associated with offshore crypto entities. The revised model involves an offshore entity obtaining Bitcoin from Coinbase and pre-paying a US registered broker-dealer in cash. This allows the broker-dealer, who is not allowed to handle Bitcoin directly, to participate in the ETF.
Hot Take: Implications of Pando’s late entry
The late entry of Pando Asset into the Bitcoin ETF race has raised questions and concerns among industry analysts. The timing of their filing and the potential approval of their ETF alongside other filings on January 10 has led to speculation about fair play and the integrity of the approval process. While it remains to be seen how Pando’s ETF will fare in the race, its entry adds another contender to an already competitive field. The outcome of this race will have significant implications for the future of Bitcoin ETFs in the United States.
