BlackRock Meets with SEC Again, Pando Asset Joins Bitcoin Spot ETF Battle

Swiss asset management company Pando Asset has submitted a new Bitcoin spot ETF application, with a total of 13 asset management companies joining the competition. According to a tweet by Bloomberg ETF analyst Eric Balchunas, BlackRock met with the SEC's Trading and Markets division again yesterday and presented a revised "physical model" design.

Infographic: SEC's preference for cash-based ETFs, how does BlackRock's physical Bitcoin ETF differ?

Swiss Asset Management Company Pando Joins the Bitcoin Spot ETF Battle

Another asset management company has joined the Bitcoin spot ETF battle! Swiss asset management company Pando Asset has filed a new application for a spot Bitcoin ETF. According to their S-1 filing, this trust will be traded on the Cboe BZX exchange and will be custodied by Coinbase.

Pando Asset has already offered cryptocurrency-related exchange-traded products (ETP) in Europe.

Franklin and Hashdex Enter Public Comment Period

While the industry eagerly anticipates the first Bitcoin spot ETF, the SEC has not yet approved one. SEC Chair Gary Gensler, when asked about the timeline for a Bitcoin spot ETF, reiterated that he will not "pre-judge" the matter.

There are currently 13 asset management companies in line waiting, and on Tuesday, 11/28, the SEC moved the applications of Franklin and Hashdex into a public comment period, leading some observers to believe that the SEC may accelerate the review process.

BlackRock Meets with SEC Again to Discuss Physical ETF Model

According to a tweet from Bloomberg ETF analyst Eric Balchunas, BlackRock met with the SEC's Trading and Markets Division again yesterday and presented a revised "physical model" design.

Balchunas believes the biggest difference is:

Offshore entities market makers acquire Bitcoin from Coinbase and prepay cash to U.S.-registered broker-dealers, meaning U.S.-registered broker-dealers do not directly handle Bitcoin.

This aligns with our previous predictions that the SEC aims to narrow down the list of entities that can trade Bitcoin spot, as market manipulation has always been a key reason why the SEC has been hesitant to approve a Bitcoin spot ETF.

Looks like BlackRock met with the SEC's Trading & Markets division again yesterday and gave presented them with a "revised" in-kind model design based on Staff's comments at their 11/20 meeting.. h/t @btcNLNico here's full doc: https://t.co/sgOpY5D1jz pic.twitter.com/863pWOX6w0

— Eric Balchunas (@EricBalchunas) November 29, 2023

Another Bloomberg ETF analyst, James Seyffart, also thinks that the SEC is taking this issue very seriously, as at least before the meeting yesterday, the SEC did not seem to budge on the "cash model." He is curious to see how things unfold after BlackRock and Nasdaq submitted the revised physical version!