Pando Asset, Swiss Firm, Enters US Spot Bitcoin ETF Race Amid Regulatory Uncertainty
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The landscape of the United States' spot Bitcoin exchange-traded fund (ETF) race has taken an unexpected turn with Swiss asset manager Pando Asset entering the fray as the 13th bidder. This move coincides with investment giant BlackRock's efforts to refine its ETF model based on feedback from the country's securities regulator.
Pando Asset's Late Entry:
On November 29, Pando Asset submitted a Form S-1 to the Securities and Exchange Commission (SEC) for the Pando Asset Spot Bitcoin Trust. Like other ETF bids, this trust aims to track Bitcoin's price, utilizing the custody services of the crypto exchange Coinbase to hold Bitcoin on behalf of the trust. The timing of Pando's entry, however, has raised eyebrows, with industry analysts expressing curiosity about the reasons behind its late filing.
Competitive Landscape:
Pando now joins a competitive field that includes major players such as BlackRock, ARK Invest, and Grayscale, all vying for SEC approval. The competition has intensified as multiple spot Bitcoin ETF applications approach a final decision deadline.
Questions Raised by Analysts:
Bloomberg ETF analyst Eric Balchunas, in a November 29 tweet, expressed having "more questions than answers" regarding Pando's filing. He particularly questioned the implications if Pando's ETF is among those predicted to be approved on January 10, a date identified by Balchunas and fellow analyst James Seyffart as a potential approval day for all spot Bitcoin ETFs.
Potential Approval on January 10:
Balchunas and Seyffart predict January 10 as the day when the SEC may either approve or deny ARK Invest's bid, anticipating a collective approval for spot Bitcoin ETFs. Despite expressing doubts about Pando's readiness to launch alongside other approvals, Seyffart acknowledges the unpredictable nature of such developments.
BlackRock's Meeting with SEC:
Simultaneously, BlackRock engaged with the SEC on November 28 to discuss its ETF bid. In response to previous concerns raised by the SEC about balance sheet impacts and risks to U.S. broker-dealers dealing with offshore crypto entities, BlackRock proposed a revision to its redemption model. The revised model involves the offshore entity obtaining Bitcoin from Coinbase and pre-paying the U.S. registered broker-dealer in cash, bypassing the direct handling of Bitcoin by broker-dealers.
As Pando Asset enters the spotlight as a late entrant into the spot Bitcoin ETF race, the industry awaits the SEC's decisions on multiple pending applications. The evolving dynamics of these filings and the efforts of major players like BlackRock underscore the growing interest and complexity surrounding the integration of cryptocurrency into traditional financial instruments. The January 10 prediction adds an element of anticipation, leaving the industry to ponder the potential impact on fair play and societal perceptions if a collective approval is indeed granted.
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