■ Pando, who already offers crypto ETPs in Europe, is the latest entrant in the US race to get a Bitcoin ETF approved.
■ BlackRock has submitted a revised in-kind model design.
■ The submission points to more issuers still meeting with the SEC, adding credence to the oncoming approval thesis.
Amid the ongoing spot Bitcoin exchange-traded funds (ETFs) race, a new player has joined the marathon. Pando Asset AG has become the thirteenth applicant even as the US Securities & Exchange Commission (SEC) continues to engage with prospective issuers.
Pando joins BlackRock in ETF race
Pando Asset AG is the latest entrant in the spot Bitcoin ETF race, joining the likes of BlackRock, Ark Invest, Fidelity and Invesco – all of whom continue to await a decision from the SEC.
Notably, Pando already offers crypto Exchange Traded Products (ETPs) in Europe, with the Swiss issuer offering a diversified portfolio where Bitcoin (BTC) and Ethereum (ETH) are not overpowering the basket. Instead, four other assets are featured, including Cardano (ADA), Binance Coin (BNB) and Solana (SOL). Through the Pando ETP in Europe, investors enjoy diversification while benefiting from enhanced growth potential crypto assets with relatively smaller market capitalizations.
The Swiss issuer is looking to ride the ETF wave in the US. This is at a time when the first movers like BlackRock are already neck deep in negotiations with the SEC.
BlackRock submits revised in-kind model design
Based on the latest reports, BlackRock met with the SEC's Trading & Markets Division on November 28 and has now submitted a revised in-kind model design.
The SEC has been approaching exchanges, pushing for cash creates as opposed to crypto (in-kind). The submission is, therefore, based on comments following their meeting on November 20, but several firms including BlackRock and Ark Invest have insisted on in-kind creates.
Speculation has it that the SEC is trying to sell the idea that spot Bitcoin ETFs should do cash creates as opposed to trading in physical crypto. The position comes on the assumption that broker-dealers cannot deal in Bitcoin, unlike exchanges.
However, if the ETFs do cash creates, the broker-dealers – who are essentially the institutional players tabling their spot BTC ETF applications to the SEC – would take the initiative to transact in BTC. According to ETF specialist Eric Balchunas, such an outcome would mean less limitations for everyone, because it would keep the institutional players from having to use unregistered subsidiaries or third-party firms to deal with the BTC.
According to experts, in-kind creates are the cleanest for end investors and issuers as well. This is contrary to the cash creates alternatives, favored by the SEC, as it helps prevent the use of unregistered brokers.
