Pando Asset Joins as 13th Contender in Bitcoin ETF Competition

• Pando Asset Steps Into Bitcoin ETF Race
• Pando Asset's Spot Bitcoin Trust
• The Continued Hunt for Approval
• BlackRock's Revised Approach
• Potential Solution

Pando Asset Steps Into Bitcoin ETF Race

Swiss asset manager, Pando Asset, has now officially joined the competition for launching the first spot Bitcoin$42,260 -0.64% exchange-traded fund (ETF) by filing an S-1 form with the Securities and Exchange Commission (SEC). This addition to the growing list of ambitious applications aims to increase expectations for the SEC's upcoming verdict.

Pando Asset's Spot Bitcoin Trust

Granted regulatory approval, the Pando Asset Spot Bitcoin Trust is planned to be listed on the Cboe BZX Exchange with Coinbase functioning as its custodian. The filing indicates the employment of CME's CF Bitcoin Reference Rate to establish the Bitcoin price inside the ETF. Pando Asset already offers exchange-traded products that track the prices of major cryptocurrencies. These are traded on the SIX Swiss Exchange for European traders, as outlined on its website.

The Continued Hunt for Approval

BlackRock's Revised Approach

BlackRock, a significant contender in the ETF competition, took a crucial step by discussing its revised redemption model with the SEC on Nov. 28. These revisions aimed to address concerns previously raised by the SEC regarding the balance sheet impacts and risks related to U.S. broker-dealers interacting with offshore crypto entities. BlackRock's proposed solution focuses primarily on resolving these concerns, which are centered on the balance sheet of the U.S. broker/dealer market maker.

Potential Solution

BlackRock's suggested fix involves setting up a cash receivable from the offshore market maker to the onshore market maker. The cash would then be directly transferred, ensuring it stays onshore upon completion. Analysts like Scott Johnsson from Van Buren Capital see this proposal as a potential solution to the SEC's worries. They argue that if the U.S. broker/dealer market maker's balance sheet is the primary issue, BlackRock's proposal should effectively address the SEC's reservations.

With Pando Asset's entry into the Bitcoin ETF competition and BlackRock's efforts to alleviate regulatory concerns through a revised model, the race for the first spot Bitcoin ETF gets more intense. Recent activities by the SEC, including discussions with BlackRock and Invesco, and some applications moving to a public comment phase, indicate potential changes in the regulatory environment. The industry remains on high alert, excitedly waiting for the approval of the first-spot Bitcoin ETF and assessing its probable effect on the broader crypto market.

Edited by Jonathan Stoker