Breaking: Pando Asset Joins Pursuit Of Spot Bitcoin ETF In The US

Pando Asset AG recently entered the competition for a spot in the United States Bitcoin ETF race, joining the ranks of asset management firms.

Pando Asset Officially Joins the Race

The Swiss-based firm, which already offers crypto Exchange-Traded Products (ETPs) in Europe, filed a new application with the United States Securities and Exchange Commission (SEC) for a spot Bitcoin ETF by filling out the S-1 form. The firm plans to trade the Pando Asset Spot Bitcoin Trust on the Cboe BZX Exchange while American cryptocurrency exchange Coinbase will act as its custodian.

Pando Asset also intends to use CME’s CF Bitcoin Reference Rate for Bitcoin pricing. According to the official website of the investment management firm, it already provides ETPs that track the prices of top cryptocurrencies to European traders on the SIX Swiss Exchange. 

With the numerous influx of spot Bitcoin ETF applications, the SEC has yet to approve any application. Although many crypto players believe that the regulator will launch mass approval when it finally decides to make a decision. 

The odds of having the SEC approve the spot BTC ETFs are still placed at 90%, according to senior Bloomberg ETF analysts Eric Balchunas and James Seyffart. Balchunas emphasized that the spot Bitcoin ETF license will be granted before January 10, 2024. Furthermore, he highlighted the fact that more applications would be submitted to the SEC before the proposed date for approval.

SEC Now Holding Meetings With Bitcoin ETF Applicants

Pando Assets’ latest filing is a confirmation of the Bloomberg ETF analyst’s sentiment on the future outlook of the ETF market as it concerns more adoption by asset managers. Additionally, the recent meetings between the SEC’s Trading and Markets division and a few of the candidates for the potential spot Bitcoin ETFs have also underscored experts’ opinion that the regulator is actively working on the applications. 

A week ago, Grayscale met with the SEC and discussed the execution of a Transfer Agency and Service Agreement with BNY Mellon for its spot Bitcoin ETF amongst other things. Shortly after, BlackRock allegedly met with the regulator where they discussed the models of redemption for the potential ETF.

BlackRock is deciding to go with an in-kind model of redemption, rather than cash creation. However, the SEC required that it submit a revised version of the proposal, which the investment manager has eventually done.