Pando Asset Joins Late-Game in U.S. Bitcoin ETF Race

Surprisingly, on November 29, Swiss asset manager Pando Asset filed their Form S-1 to the SEC for the Pando Asset Spot Bitcoin Trust, entering the competition for a spot Bitcoin ETF in the US.

A late but surprising entrant into the race for the coveted slot in the Bitcoin ETF market in the United States is Pando Asset, an asset management company headquartered in Switzerland. The business applied for approval of the Pando Asset Spot Bitcoin Trust on November 29th, submitting a Form S-1 to the U.S. Securities and Exchange Commission (SEC).

Curious Timing and Skepticism

Eric Balchunas, an analyst with Bloomberg ETF, highlighted his doubts over Pando’s application in a tweet on X (formerly Twitter), writing, “I have more questions than answers about this.” Why right now? James Seyffart, a fellow Bloomberg analyst, and Balchunas have been focusing on January 10 as a possible clearance date for spot Bitcoin ETFs, such as Pando’s.

Balchunas expressed worries about what would happen if Pando’s ETF and others are authorized on January 10. He said, “What does that say about fair play and even society as we know it?” Pando’s sudden action adds an intriguing twist to the already fierce competition among major companies in the Bitcoin ETF space, including ARK Invest, Grayscale, and BlackRock.

The U.S. Securities and Exchange Commission met with financial behemoth BlackRock to discuss its ETF bid on the same day as Pando’s submission. In response to the SEC’s concerns during a prior meeting, BlackRock presented an updated redemption model that addressed the risks and effects on balance sheets for U.S. broker-dealers doing business with overseas cryptocurrency firms.

Since broker-dealers are unable to handle Bitcoin directly, the updated model calls for the offshore business to purchase Bitcoin from Coinbase and pay the U.S. licensed broker-dealer in cash up front. By navigating the SEC’s worries and developing a redemption model that puts the onus of Bitcoin transaction on issuers, this novel solution seeks to free broker-dealers from having to deal with unregistered subsidiaries or third-party companies.

These calculated actions by Pando and BlackRock highlight the shifting dynamics of the bitcoin market and the attempts to conform to regulatory requirements as the competition for the first-place Bitcoin ETF approval heats up. The weeks before January 10th will surely be crucial for the cryptocurrency industry’s hopes of having an ETF.