Pando Asset, Swiss Firm, Enters US Spot Bitcoin ETF Race Amid Regulatory Uncertainty

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Swiss asset manager Pando Asset has joined the intensifying race to launch a spot Bitcoin exchange-traded fund (ETF) in the United States. This development comes as financial heavyweight BlackRock engages with the SEC to propose an updated ETF model, incorporating the agency’s feedback.

Pando Asset, known for offering cryptocurrency Exchange-Traded Products (ETPs) in Europe, has taken a significant step by filing a Form S-1 with the Securities and Exchange Commission (SEC) on November 29. This form is essential for registering securities in the U.S. The proposed Pando Asset Spot Bitcoin Trust aims to trade on the Cboe BZX Exchange, with Coinbase, a prominent U.S. cryptocurrency exchange, serving as the custodian, reflecting Pando’s strategy to navigate the U.S. market as a foreign entity.

Pando Asset plans to utilize the CF Bitcoin Reference Rate from CME for Bitcoin pricing to align with established financial practices. The company already has a presence in the European market, offering ETPs on the SIX Swiss Exchange that track the prices of various popular cryptocurrencies.

Despite the growing number of applications, the SEC has yet to approve any spot Bitcoin ETFs, a point of contention and anticipation in the cryptocurrency community. Pando Asset joins the ranks of 12 other hopefuls, including industry giants like BlackRock, ARK Invest, and Grayscale, in seeking SEC approval for a spot in Bitcoin ETF in the U.S.

The response from authorities and market analysts has been mixed. Eric Balchunas, a Bloomberg ETF analyst, expressed skepticism in a November 29 post, highlighting the uncertainty surrounding Pando’s late entry into the race. Balchunas raised concerns about the potential inclusion of Pando’s ETF in a group of applications he believes might receive approval on January 10, questioning the broader implications for fairness and market integrity.

The SEC’s decision on ARK Invest’s application, due on January 10, is seen as a potential watershed moment for all pending spot Bitcoin ETFs. James Seyffart, another Bloomberg ETF analyst, shared his doubts about Pando’s readiness to launch alongside other contenders on the speculated approval date, though he acknowledged the unpredictability of the situation.

As the cryptocurrency market eagerly awaits the SEC’s decision, the entry of Pando Asset into this competitive landscape underscores the growing global interest in cryptocurrency ETFs and the ongoing challenges of navigating the U.S. regulatory environment.