The Battle for Bitcoin Spot ETF Heats Up: Pando Asset Joins, BlackRock and SEC Rendezvous Again
A New Contender in the Bitcoin Spot ETF Arena
The race for launching the first Bitcoin spot ETF (Exchange-Traded Fund) in the United States is intensifying as Swiss asset management firm Pando Asset steps into the arena. This move marks yet another effort to get regulatory approval for a Bitcoin spot ETF, a much-anticipated financial product in the cryptocurrency world.
Pando Asset’s Bold Move into Bitcoin ETF
Pando Asset, a Swiss-based asset manager, has recently filed for a new Bitcoin spot ETF. According to their S-1 filing, the trust aims to trade on the Cboe BZX Exchange, with Coinbase appointed as the custodian. Already offering crypto-related ETPs (Exchange-Traded Products) in Europe, Pando Asset’s entry into the US market signals a growing interest in cryptocurrency-based financial products.
Franklin and Hashdex Progress into Public Comment Phase
With the crypto community eagerly awaiting the debut of the first Bitcoin spot ETF, the US Securities and Exchange Commission (SEC) has not yet given the green light. As SEC Chairman Gary Gensler maintains his stance of not ‘pre-judge’ the issue, the wait continues. However, the SEC’s move to transition Franklin and Hashdex’s applications into a public comment phase on November 28th has stirred some optimism for an expedited review process. Currently, 13 asset management firms are lined up for SEC’s approval.
BlackRock’s Continued Dialogue with the SEC
In a significant development, BlackRock, the world’s largest asset manager, has once again met with the SEC’s Trading and Markets Division. According to Bloomberg ETF analyst Eric Balchunas, BlackRock presented a “revised” in-kind model design based on the SEC staff’s feedback from their meeting on November 20th. This model involves offshore entities obtaining Bitcoin from Coinbase and then prepaying cash to US-registered broker-dealers, essentially preventing direct Bitcoin handling by US-registered entities.
The Significance of BlackRock’s Model
The proposed model by BlackRock reflects the ongoing concerns of market manipulation, a primary reason for the SEC’s hesitancy in approving a Bitcoin spot ETF. By limiting the list of entities that can trade Bitcoin spot, BlackRock’s approach might address some of the SEC’s regulatory concerns.
Analysts’ Perspectives on the Developments
Bloomberg ETF analyst James Seyffart notes that the SEC seems to be taking this issue seriously, with no apparent concession on the “cash model” as of the latest meeting. However, the developments following BlackRock and Nasdaq’s submission of the revised physical model have piqued the interest of industry watchers.
A Transformative Period for Bitcoin ETFs
The efforts of Pando Asset and BlackRock, along with other contenders, mark a transformative period in the journey towards a Bitcoin spot ETF in the US. As the SEC continues to deliberate, the crypto community remains hopeful for a breakthrough that could potentially reshape the landscape of cryptocurrency investment.
Keywords: Bitcoin Spot ETF, Pando Asset, BlackRock, SEC, Cryptocurrency Investment, Exchange-Traded Fund, Crypto ETPs, Market Regulation, Gary Gensler, Financial Products
