Pando Joins as the Thirteenth BTC ETF Applicant While BlackRock Introduces Updated In-Kind Model

In the race for spot Bitcoin exchange-traded funds (ETFs), a fresh contender has emerged. Pando Asset AG enters as the thirteenth applicant, joining as the US Securities & Exchange Commission (SEC) maintains discussions with potential issuers.

Simultaneously, the investment powerhouse BlackRock engaged the nation’s securities regulator to present a revised ETF model, incorporating feedback from the agency.

Also, on November 29, Pando lodged a Form S-1 with the Securities and Exchange Commission. This form is utilised for registering securities with the regulatory body, specifically for the Pando Asset Spot Bitcoin Trust.

We have a late entrant into the spot bitcoin ETF race…

Pando, who already offers crypto ETPs in Europe. pic.twitter.com/OamnqJrUNJ

— Nate Geraci (@NateGeraci) November 29, 2023

Interestingly, Pando has already introduced crypto Exchange Traded Products (ETPs) across Europe, offering a well-balanced portfolio that doesn’t heavily rely on Bitcoin (BTC) and Ethereum (ETH). Instead, it includes four other assets like Cardano (ADA), Binance Coin (BNB), and Solana (SOL). This diverse range allows investors, through the Pando ETP in Europe, to access varied crypto assets with smaller market caps, offering growth potential.

Now eyeing the ETF market in the US, the Swiss issuer aims to capitalise on the growing trend. This move aligns with ongoing negotiations between prominent entities like BlackRock and the SEC, indicating the intensifying competition within this space.

According to recent updates, BlackRock engaged with the SEC’s Trading & Markets Division on November 28, unveiling a revised in-kind model.

The SEC’s recent discussions with exchanges favoured cash creates over crypto (in-kind) transactions. Following the November 20 meeting feedback, several firms, including BlackRock and Ark Invest, advocate for in-kind transactions despite the SEC’s inclination towards cash transactions for spot Bitcoin ETFs. This stance assumes that broker-dealers lack the capacity to handle Bitcoin, unlike exchanges.

However, if ETFs opt for cash transactions, broker-dealers, the primary institutional applicants for spot BTC ETFs, would need to transact in BTC. According to ETF expert Eric Balchunas, this approach would reduce restrictions, eliminating the need for institutional players to rely on unregistered subsidiaries or third-party entities to handle BTC transactions.

The race to January will be hot.