Bitcoin ETF Race Gets 13th Subscriber, BlackRock Revises ETF Model
Swiss asset manager Pando Asset has become an unexpected late entrant to the bitcoin (BTC) exchange-traded fund (ETF) race in the United States.
That day, investment giant BlackRock met with the country's securities regulator to propose a revised ETF model based on the agency's recommendations.
On November 29, Pando filed Form S-1 with the Securities and Exchange Commission – used to register securities with the agency – for the Pando Asset Spot Bitcoin Trust.
Like other ETF auctions, the Trust aims to track the value of Bitcoin through the custodial arm of crypto exchange Coinbase to hold Bitcoin on behalf of the trust.
Pando is the 13th bidder aiming to have a permitted spot Bitcoin ETF in the US and joins the race with a dozen others that have bid for SEC approval, including BlackRock, ARK Invest and Grayscale.
In a Nov. 29 X (Twitter) post, Bloomberg ETF analyst Eric Balchunas said he had “more questions than answers” about Pando's filing, asking why it was delayed.
Questions beyond answers: Where have you been for the past 3 months? Why bother at this point? What does it say about fair play and what we even know about society if Jan 10 team up? And what exactly is Pando?
— Eric Balchunas (@EricBalchunas) November 29, 2023
Balchunas also raised concerns about the implications of the Pando ETF's Bitcoin ETF filings, which he expects to be approved on January 10, to be among the “staff.”
“What does it say about fair play and what we even know about society?” He added.
Balchunas and Bloomberg ETF analyst James Seyfert put their money in 2015. They put it on January 10th because it's the date that all Bitcoin ETFs will be approved at once because it's the day that the SEC has to either deny or approve the ARK investment bid.
However, Seifert told followers on X that he doubts the Pando ETF is “ready to go ahead.” [the] On the first day with the others, but I guess crazier things happened.
BlackRock meets with SEC to discuss ETF bid.
Meanwhile, the SEC met with BlackRock and Invesco executives on Nov. 28 to discuss their ETF bids, according to agency filings.
BlackRock has revised its redemption model to address the SEC's concerns over the balance sheet impact and risk of its previous exposure to US broker-dealers dealing with offshore crypto entities.
Related: ‘Buy the Rumor, Sell the News' – Bitcoin ETF TradFi May Trigger Selloff
Balchunas explained the update as the offshore entity receiving Bitcoin from Coinbase and prepaying a US-registered broker-dealer in cash, which cannot handle Bitcoin directly.
Here's the original and modified version of the model, the new thing seems to be step 4, where the offshore component market maker gets bitcoin from Coinbase and then pre-pays cash to a US-registered broker-dealer (which is not allowed to be tapped). bitcoin). pic.twitter.com/bDgYAnufWA
— Eric Balchunas (@EricBalchunas) November 29, 2023
In a November 17 X post, Balchunas stated that broker-dealers cannot be dealt in Bitcoin and that the SEC requires ETFs to have redemption models. [the] It puts pressure on providers of trading in Bitcoin and prevents broker-dealers from using unregistered subsidiaries or third-party firms. [with] BTC”
Magazine: Crypto City Guide to Helsinki: 5,050 Bitcoin at $5 in 2009 is Helsinki's crypto claim to fame.
