Pando Asset Makes Late Entry into US Bitcoin ETF Race, BlackRock Revises Proposal
Summary:
Swiss asset manager Pando Asset has made a late entry into the race for a Bitcoin exchange-traded fund (ETF) in the U.S., joining 12 other firms, including giants like BlackRock and ARK Invest. Simultaneously, BlackRock revised its ETF proposal, addressing earlier SEC concerns. Bloomberg ETF analysts predict all spot Bitcoin ETFs will receive approval on January 10.
Pando Asset, a Swiss asset management firm, has surprisingly entered the competition for the Bitcoin (BTC) spot exchange-traded fund (ETF) in the United States. This happened on the same day when influential investor BlackRock presented a revised ETF proposal to the U.S. securities regulator, taking into account their comments. Pando applied to the Securities and Exchange Commission on November 29 using a Form S-1, a document for registering securities. Like preceding ETF proposals, Pando's trust is designed to follow Bitcoin's value with the crypto exchange Coinbase's custody division safeguarding Bitcoin on behalf of the trust. Pando is now the 13th contender looking for approval for a spot Bitcoin ETF in the U.S., joining 12 others, including BlackRock, ARK Invest and Grayscale, in clamouring for SEC’s endorsement. On November 29, Bloomberg ETF analyst Eric Balchunas posted on Twitter expressing numerous queries about Pando's late entry. He questioned Pando’s timing and implications if their ETF is among the ones expected to be approved on January 10. Bloomberg ETF analysts Eric Balchunas and James Seyffart have forecasted that all spot Bitcoin ETFs will be simultaneously approved on January 10, which is the deadline for SEC’s decision on ARK Invest’s application. However, Seyffart expressed doubts about the readiness of Pando’s ETF to be launched on the same day as its competitors. In related news, executives from BlackRock and Invesco met with the SEC on November 28 to deliberate on their ETF applications. Agency documents revealed that BlackRock proposed changes to its redemption model to address SEC’s previous concerns about balance sheet impacts and risks associated with U.S. broker-dealers transacting with offshore crypto firms. On November 17, Balchunas explained on Twitter that these broker-dealers are not permitted to deal with Bitcoin and that the SEC requires ETFs to present redemption models that circumvent the need for broker-dealers to use unregistered subsidiaries or third-party firms to transact Bitcoin.
Published At
11/30/2023 12:46:03 AM
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