The Swiss asset manager, Pando Asset, has recently submitted an approval request for a Bitcoin spot ETF to the SEC.
Let’s see below all the details and future implications of this news.
News from Swiss manager: Pando Asset requests approval for a Bitcoin ETF
As anticipated, the Swiss asset manager Pando Asset AG has officially submitted a request for the approval of a Bitcoin-based Exchange-Traded Fund (ETF) to the Securities and Exchange Commission (SEC).
The proposed ETF, called Pando Asset Spot Bitcoin Trust, aims to be listed on the Cboe BZX Exchange, with Coinbase designated as the custodian.
The document presented by Pando Asset highlights the intention to use the CME CF Bitcoin Reference Rate to establish the prices of Bitcoin within the ETF.
We remind you that Pando Asset is already active in the cryptocurrency market, offering exchange-traded products for major cryptocurrencies on the SIX Swiss Exchange.
The company, based in Switzerland, was founded by a team of experts in the financial industry, blockchain technology, and cryptocurrencies, boasting partnerships with prominent companies such as Huobi Group, 21 Shares AG, and Deutsche Boerse AG.
The collaboration with Coinbase, one of the leading cryptocurrency custodians, aims to ensure secure and fully guaranteed operations.
However, despite the general optimism, some pioneers in the field of cryptocurrency-linked Exchange-Traded Funds (ETFs) express caution regarding market entry.
They cite concerns about potential competition, high costs associated with regulation and marketing, and a possible lack of demand as reasons for their skepticism.
According to Reuters, although there is significant interest in a Bitcoin-based ETF, with potential investments reaching $3 billion in the early days of trading, some experts in the field of blockchain and cryptocurrencies prefer to take a cautious approach.
Their skepticism suggests that the enthusiasm for a Bitcoin-linked ETF may be excessive and that the profitability of such products may be uncertain for some issuers.
SEC delays decisions on Bitcoin ETFs: possible roadblocks ahead
Recently, some analysts have suggested that the Securities and Exchange Commission (SEC) may impose obstacles before granting approval to Bitcoin ETFs in early 2024, following anticipated and delayed decisions regarding the requests of two potential issuers.
The US SEC has indeed postponed its evaluation of spot Bitcoin ETF requests made by asset management giant Franklin Templeton and crypto-native company Hashdex.
According to documents dated November 28th, the SEC is seeking new comments for the review of these Bitcoin ETFs. This move follows the authority’s announcement to extend the public input period until mid-November 2023.
The original date for the decision on both proposals was set for January 1, 2024, making the SEC’s delay known weeks before the deadline.
The ETF expert James Seyffart suggested that this initial update could indicate coordination by the SEC in preparation for approvals for all twelve issuers, including BlackRock and Grayscale.
Despite these uncertainties, the possible approval date remains set for the first weeks of January, based on the SEC’s procedures.
However, it should be noted that such forecasts are considered plausible and do not represent a defined timing for the decision.
In response to this news, the price of Bitcoin (BTC) has increased by 3%, surpassing $38,000 on exchange platforms like Binance. This increase comes during a three-month period of consecutive positive performance, fueled by enthusiasm surrounding Bitcoin ETFs.
Joshua Lim, former head of derivatives at Genesis, has indeed observed that institutional traders are taking long positions in anticipation of possible approval by the SEC.
