The race for a spot Bitcoin ETF in the US is heating up! Swiss asset manager Pando Asset has thrown its hat into the ring, filing an application with the SEC. But with a history of delays and rejections, will Pando Asset’s bid be any different? Let’s dive into the details.
Pando Asset Enters the Spot Bitcoin ETF Arena
- Pando Asset, a Swiss asset management firm, has officially applied for a spot Bitcoin ETF with the SEC.
- This move signifies growing interest in bringing regulated Bitcoin investment products to the US market.
- Pando Asset already offers crypto exchange-traded products (ETPs) in Europe, giving them a head start in the digital asset space.
Pando Asset’s filing, an S-1 form, outlines the structure of the proposed Pando Asset Spot Bitcoin BTC Trust. If approved, the ETF would trade on the Cboe BZX Exchange, with Coinbase acting as the custodian for the Bitcoin holdings. The fund will rely on CME’s CF Bitcoin Reference Rate for pricing.
What Does Pando Asset Bring to the Table?
Pando Asset isn’t a newcomer to the crypto investment world. They already provide European traders with access to exchange-traded products tracking leading cryptocurrencies, listed on the SIX Swiss Exchange. This experience could give them an edge in navigating the complexities of launching a similar product in the US.
The SEC’s Stance: A History of Hesitation
Despite the industry’s eagerness, the SEC has yet to approve a spot crypto ETF. The regulator has consistently delayed decisions on applications from major players like BlackRock, Fidelity, and Ark Invest.
Read Also: SEC Postpones Decision On Hashdex Bitcoin ETF
Signs of Progress? Recent SEC Activity
There may be a glimmer of hope. The SEC recently moved applications from Franklin Templeton and Hashdex into a public comment period, potentially indicating an accelerated review process. Furthermore, the SEC held meetings with representatives from Invesco and BlackRock to discuss their proposals.
BlackRock addressed concerns raised by the SEC regarding the in-kind model, proposing an approach to mitigate balance sheet impacts and risks for the Market Maker’s U.S. Registered Broker/Dealer entity.
Read Also: SEC Delays Verdict On Franklin and Globe X’s Bitcoin ETF Applications
Van Buren Capital’s Scott Johnsson commented on BlackRock’s proposal, suggesting it could address the SEC’s concerns regarding the balance sheet of the US BD market maker.
He further explained the proposed model’s mechanics, highlighting the creation of a cash receivable from the offshore MM to the onshore MM to ensure the cash resides onshore.
https://twitter.com/SGJohnsson/status/1729929904974614950
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
The Road Ahead: What to Expect
The SEC’s decision on Pando Asset’s application, and others, remains uncertain. The regulator’s primary concerns revolve around investor protection, market manipulation, and the custody of Bitcoin. Whether Pando Asset’s experience in Europe and the proposed solutions from firms like BlackRock will sway the SEC remains to be seen.
Key Takeaways:
- Pando Asset’s spot Bitcoin ETF application adds to the growing pressure on the SEC to approve such a product.
- The SEC’s deliberations are focused on investor protection and market integrity.
- Potential approval of a spot Bitcoin ETF could open the doors to wider institutional and retail adoption of Bitcoin.
The coming months will be crucial in determining the fate of spot Bitcoin ETFs in the US. Stay tuned for further updates!
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.