Spot Bitcoin (BTC) ETF Updates: Pando Asset Joins the Race, BlackRock Revises Its Model

Swiss asset manager Pando Asset becomes the 13th applicant to join the race for a spot bitcoin (BTC) exchange-traded fund (ETF), while BlackRock met with the SEC to update its ETF application. 

Pando Asset officially entered the race for a spot BTC ETF in the United States. Asset manager BlackRock also met with the SEC to discuss changes to its ETF bid. 

Thirteen Entrants Race for Spot ETF Approval

The Swiss-based company filed an S-1 form with the US Securities and Exchange Commission (SEC) seeking approval for an ETF. Pando Asset already offers crypto ETF products across Europe. According to its website, the company offers exchange-traded products (ETPs) that track the prices of leading cryptos on the SIX Swiss Exchange. 

According to the filing, pending approval, the Pando Asset Spot Bitcoin Trust would trade on the Cboe BZE Exchange and named Coinbase as its custodian. The filing mentions CME’s CF Bitcoin Reference Rate for bitcoin pricing. 

However, Bloomberg chief ETF analyst Eric Balchunas questioned why Pando’s application came so late in the race. 

more questions than answers: where have they been for last 3mo? why bother at this point? if they make Jan 10 crew what does that say about fair play and even society as we know it? And what exactly is a Pando?

— Eric Balchunas (@EricBalchunas) November 29, 2023

BlackRock Meets with SEC to Revise Its ETF Model

As the industry eagerly awaits the approval of the first spot BTC ETF in the United States, BlackRock and Invesco executives met with the SEC to discuss changes to their ETF applications. BlackRock was the first asset manager to apply for a spot bitcoin ETF but has since been joined by numerous firms such as ARK Invest and Fidelity. Since its initial filing, BlackRock has made several amendments to its application to address the SEC’s concerns. 

According to official SEC documents, BlackRock proposed revising its redemption model to address SEC concerns. During a previous meeting, the securities agency raised issues on balance sheet impacts and risks to US broker-dealer dealings with offshore cryptocurrency entities. 

Balchunas explained BlackRock’s revision on social media platform X:

“…look like the new thing is STEP 4, which is the offshore entity market maker getting bitcoin from Coinbase and then pre-paying in cash to the US registered broker dealer (who is not allowed to touch bitcoin).”  

Balchunas previously explained that broker-dealers cannot deal in Bitcoin. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.