Swiss Firm Pando Asset Files Application for Bitcoin ETF in the US
Swiss digital asset manager Pando Asset AG has submitted an application to the US Securities and Exchange Commission (SEC) to launch a spot Bitcoin exchange-traded fund (ETF) in the country. The proposed Pando Asset Spot Bitcoin Trust would offer investors shares backed by Bitcoin, with Bank of New York Mellon acting as the administrator and Coinbase Custody serving as the fund’s custodian.
The Potential of a Bitcoin ETF
A genuine Bitcoin ETF that directly tracks BTC, rather than just derivatives, has yet to be approved in the US. However, the concept is that shares in a Bitcoin ETF would mirror the value fluctuations of Bitcoin itself. This would allow buyers to gain exposure to BTC without actually owning or holding digital coins.
Pando Asset’s Current Offerings
Pando Asset currently manages $29 million worth of assets across three exchange-traded products (ETPs): Pando Asset Crypto 6 ETP, Pando Asset Crypto Bitcoin ETP, and Pando Asset Crypto Ethereum ETP. All three funds are listed on the SIX Swiss Exchange and provide exposure to various cryptocurrencies.
Past SEC Concerns
The SEC has previously rejected spot Bitcoin ETF applications due to concerns over market manipulation, price volatility, custody options, and the reliability of price data. However, proponents of these funds argue that the SEC has granted approvals for similar Bitcoin futures ETFs, which are regulated by the Commodity Futures Trading Commission (CFTC).
Positive Impact on Existing Funds
The potential approval of a Bitcoin ETF has generated significant optimism among existing funds in both the US and abroad. A recent report by CoinShares revealed that $1.5 billion has flowed into crypto funds in 2023, with 90% of the investments going into Bitcoin-tracking funds.
Current Bitcoin Performance
As of Wednesday morning, Bitcoin was trading around $37,600. However, news of Pando Asset’s SEC filing caused a slight increase, with Bitcoin approaching $38,000. Overall, the cryptocurrency’s value has remained relatively stable compared to the previous day.
Pando Asset Joins Other Bitcoin ETF Applicants
Pando Asset now joins other prominent firms such as BlackRock, VanEck, Valkyrie, and WisdomTree in the race to launch a Bitcoin ETF. The Zug-based company already offers Bitcoin and Ethereum ETPs in multiple countries and has been seeking approval to expand its market presence across the European Union and the Americas since June 2022.
Hot Take: Pando Asset’s Bid for a US Bitcoin ETF
Pando Asset AG has filed an application with the SEC to introduce a spot Bitcoin ETF in the United States. This move comes as investors eagerly await the approval of a genuine Bitcoin ETF that directly tracks BTC. While past concerns have hindered similar applications, optimism surrounding a potential SEC approval has already brought significant investment into crypto funds. With Pando Asset joining other notable contenders in the race for a Bitcoin ETF, the market eagerly anticipates further developments that could reshape the landscape of cryptocurrency investment.
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