Swiss Asset Manager Pando Asset Files for Spot Bitcoin ETF Approval
Swiss asset manager Pando Asset has submitted an application to the U.S. Securities and Exchange Commission (SEC) for the approval of a spot Bitcoin exchange-traded fund (ETF). The proposed Pando Asset Spot Bitcoin Trust would be listed on the Cboe BZX Exchange and utilize Coinbase as its custodian. The trust plans to use the CME’s CF Bitcoin Reference Rate for Bitcoin pricing. This move aligns with Pando’s existing offerings in Europe and indicates a strategic expansion to cater to a wider range of investors globally.
SEC’s Historical Caution with Spot Crypto ETFs
The SEC has historically approached spot crypto ETFs with caution, often delaying or not approving proposals from prominent asset managers like BlackRock, Fidelity, and ARK Invest. Concerns about market volatility, liquidity, and potential manipulation in the crypto space have contributed to this cautious stance.
Possible Shift in SEC’s Approach
Recent developments suggest a potential shift in the SEC’s approach. Applications from Franklin Templeton and Hashdex are currently in a public comment period, indicating an expedited review process. Ongoing dialogues and negotiations between the SEC and representatives from Invesco and BlackRock further highlight this possible shift. BlackRock’s proposal to address the SEC’s concerns regarding balance sheet impacts and risks associated with in-kind models exemplifies these efforts.
Alleviating SEC Concerns with Cash Receivable Proposal
Scott Johnsson of Van Buren Capital suggests that BlackRock’s proposal to create a cash receivable from offshore to onshore market makers may alleviate the SEC’s concerns. This would ensure that cash remains within U.S. jurisdiction, addressing potential risks associated with in-kind models.
Hot Take: Pando Asset’s Bitcoin ETF Filing Signals Growing Crypto Integration in Finance
Swiss asset manager Pando Asset’s filing for a spot Bitcoin ETF with the SEC represents a significant step towards integrating cryptocurrencies into mainstream finance. By seeking approval for an ETF that tracks Bitcoin, Pando Asset aims to cater to a broader range of investors globally, especially within the cryptocurrency market. While the SEC has historically been cautious with spot crypto ETFs, recent developments indicate a possible shift in their approach. The ongoing dialogues and negotiations with asset managers like BlackRock and Invesco suggest a growing acceptance and understanding of the potential benefits and risks associated with crypto assets. If approved, Pando Asset’s Bitcoin ETF could pave the way for further crypto integration in traditional financial markets.
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