Pando Asset, a Switzerland-based company involved in asset management, has filed an S-1 form with the Securities Exchange Commission (SEC) regarding consent for a spot bitcoin ETF.
While awaiting approval, the Pando Asset Spot Bitcoin (BTC-0.70%) Trust will continue to carry out trading on the Chicago Board Options Exchange, the custodian being Coinbase. In the case of bitcoin pricing, the filing states the utilization of CME’s CF Bitcoin Reference Rate.
Pando remains providing exchange-traded items that keep a close watch on the prices of prime cryptocurrencies in terms of European traders who are on the SIX Swiss Exchange, as per its website.
The concerned industry is eagerly awaiting the initial spot crypto ETF, but the SEC has not given its consent to even one. The big players in asset management, such as BlackRock, Fidelity, 21 Shares, and Ark Invest, have placed applications before the regulator, which is seemingly dragging its feet. Added to that are names like Bitwise, VanEck, Invesco, Valkyrie, Global X, Wisdomtree, Hashdex, and Franklin Templeton.
Recently, the SEC shifted the applications from Franklin Templeton and Hashdex within a public comment timezone, giving certain people the idea that the agency intends to speed up the review procedure.
The SEC engaged in discussion with representatives of BlackRock and Invesco. According to BlackRock, during the deliberations with representatives from Trading and Markets. They became cognizant of the SEC’s unresolved inquiries concerning the In-kind module’s balance sheet effects and risk factors associated with the US-certified broker and dealer aspect of Market Maker, which differs from the unlicensed entity at the time of redemption flow. In response, BlackRock came up with certain suggestions that would address these issues.
According to Scott Johnsson of Van Buren of Capital, BlackRock’s proposal should suffice to resolve the issue if everything revolves around the balance sheet. The previous in-kind method involves transferring a cash receivable from the off-shore MM to the on-shore MM and eventually shifting the cash directly to remain on-shore after every consideration.