Swiss firm Pando Asset has applied for a Bitcoin spot ETF in the U.S., naming Coinbase as the custodian and the Bank of New York Mellon as the administrator. If approved, the ETF, which aims to reflect Bitcoin's price, would list on the Cboe BZX Exchange. The SEC has not yet approved any spot Bitcoin ETFs.
Our analysis of the situation
The race for a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States has intensified as Swiss asset management company Pando Asset recently joined the fray. In a bold move, Pando Asset filed with the Securities and Exchange Commission (SEC) on November 29, marking its presence as the 13th financial services firm to seek approval for a BTC trust without directly investing in the crypto asset.
Titled as the Pando Asset Spot Bitcoin Trust, the proposed trust aims to emulate the price performance of BTC, ushering virtual assets into the traditional financial ecosystem without directly engaging in the crypto space. The trust plans to predominantly comprise BTC held by a chosen custodian, with Coinbase appointed for this crucial role. Furthermore, the Bank of New York Mellon is set to act as the official administrator of the ETF.
Once approved, the trust is poised to be available on the US stock exchange Cboe BZX Exchange, steering BTC into the mainstream financial arena upon successful registration. While awaiting the SEC’s decision on its application, Pando Asset has already established its footprint in crypto-related exchange-traded products (ETPs) in Europe, notably achieving significant growth in its digital asset ETPs listed on the SIX Swiss Exchange.
Nevertheless, despite the industry's anticipation for the approval of spot BTC Traded ETFs, the SEC has yet to grant the green light to any, despite previously approving futures BTC trusts. The regulator has recently opted to defer decisions on applications from notable industry players, prompting speculation on the pace of the review process.
In a recent development, the SEC has engaged in discussions with representatives from influential firms such as Invesco and BlackRock, indicating critical dialogue surrounding the proposed ETFs. Notably, concerns have emerged regarding the In-kind model and its potential impact on market dynamics, leading to proposals aimed at addressing these apprehensions.
The discussion within the industry reflects the evolving landscape of Bitcoin adoption and the intricate regulatory considerations that accompany its integration into traditional financial systems. As the conversation continues to unfold, Pando Asset’s pursuit of a Bitcoin spot ETF stands as a testament to the evolving dynamics in the intersection of cryptocurrency and traditional finance.
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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