Pando Asset, an asset management company based in Switzerland, submitted Form S-1 to the Securities and Exchange Commission (SEC) regarding approval of a spot Bitcoin ETF.
Pending approval, the Pando Asset Spot Bitcoin (BTC-0.70%) Trust will continue to conduct trading on the Chicago Board Options Exchange, of which Coinbase is the custodian. For Bitcoin pricing, the filing states that CME’s CF Bitcoin benchmark rate will be utilized.
Pando continues to offer exchange-traded products that closely monitor the prices of major cryptocurrencies from the perspective of European traders on the SIX Swiss exchange, according to its website.
The industry is eagerly awaiting the launch of the cryptocurrency’s initial spot ETF, but the SEC has not agreed to a single one. Large players in asset management, such as BlackRock, Fidelity, 21 Shares and Ark Invest, have filed applications ahead of regulators who seemingly dragged their feet. It adds names like Bitwise, VanEck, Invesco, Valkyrie, Global X, Wisdomtree, Hashdex, and Franklin Templeton.
Recently, the SEC moved applications from Franklin Templeton and Hashdex within its public comment window, giving certain people the idea that the agency plans to speed up the review process.
The SEC engaged in discussions with representatives of BlackRock and Invesco. In deliberations with representatives of Trading and Markets, according to BlackRock. They became aware of unresolved inquiries from the SEC regarding the balance sheet effects of spot modules and the risk factors associated with the U.S.-certified broker and dealer side of unlicensed entities and other market makers at the time of redemption flows. In response, BlackRock has made specific proposals to address these issues.
If everything revolves around the balance sheet, BlackRock’s proposal would be enough to solve the problem, according to Scott Johnsson of Van Buren of Capital. The existing spot method was to transfer cash receivables from an overseas MM to a domestic MM and eventually, after all considerations, move the cash directly into the country.