A Swiss Asset Manager Joins the BTC ETF Race
Pando Asset, a Swiss asset manager, has officially entered the race to launch a spot bitcoin (BTC) exchange-traded fund (ETF) in the United States. This makes Pando Asset the 13th applicant in the race. Pando Asset already offers crypto ETF products in Europe. The company has filed an S-1 form with the US Securities and Exchange Commission (SEC) seeking approval for the ETF. The ETF, called the Pando Asset Spot Bitcoin Trust, will trade on the Cboe BZX Exchange and will have Coinbase as its custodian. It will track the prices of leading cryptocurrencies using CME’s CF Bitcoin Reference Rate.
Questions About Pando Asset’s Late Application
Eric Balchunas, Bloomberg’s chief ETF analyst, raised questions about the timing of Pando Asset’s application. He questioned why the company waited so long to enter the race for a BTC ETF and what it says about fair play and society. Balchunas tweeted, “More questions than answers: where have they been for the last 3 months? Why bother at this point? If they make the January 10th crew, what does that say about fair play and even society as we know it? And what exactly is a Pando?”
BlackRock and Invesco Meet with SEC for ETF Revisions
BlackRock and Invesco, two major asset managers, met with the SEC to discuss changes to their ETF applications. BlackRock was the first to apply for a spot BTC ETF, but other firms like ARK Invest and Fidelity have also joined the race. BlackRock has made amendments to its application to address the SEC’s concerns, particularly regarding balance sheet impacts and risks associated with US broker-dealer dealings with offshore cryptocurrency entities. The company proposed a revised redemption model to address these concerns. Balchunas explained that the new model involves the offshore entity market maker obtaining bitcoin from Coinbase and pre-paying in cash to the US registered broker-dealer who cannot handle bitcoin directly.
Hot Take: The Growing Competition for a BTC ETF
The race to launch a spot BTC ETF in the US is heating up with Pando Asset becoming the 13th entrant. While the company already offers crypto ETF products in Europe, its late entry into the US race has raised questions. On the other hand, BlackRock, the first asset manager to apply for a spot BTC ETF, met with the SEC to revise its application and address concerns. As more firms join the race, competition is fierce to gain SEC approval for a BTC ETF. The industry eagerly awaits the outcome as an approved BTC ETF would provide more accessibility and legitimacy to the cryptocurrency market.
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