Pando Asset, a company headquartered in Switzerland, has recently entered the competition to introduce a spot Bitcoin ETF in the United States.
Pando Asset is among numerous contenders aspiring to introduce a fund category that is awaiting approval from the US Securities and Exchange Commission (SEC), alongside many other applicants. Pando Asset is the latest player in the race to launch a spot Bitcoin ETF in the US. This company located in Switzerland seeks to join the game that may change the cryptocurrency sector.
But wait, what exactly is a spot Bitcoin ETF? Well, it’s an investment fund that allows investors to buy and sell Bitcoin without actually owning the underlying asset. Instead of dealing with the complexities of acquiring and storing Bitcoin themselves, investors can simply buy shares of the ETF and have exposure to the price movements of Bitcoin. It’s kind of like buying a stock, but instead of owning a piece of a company, you own a piece of Bitcoin.
Swiss Firm Proposes Pando Asset Spot Bitcoin Trust
On Wednesday, Pando Asset made its intentions known by submitting an official filing, suggesting the establishment of a new entity called the Pando Asset Spot Bitcoin Trust.
BNY Mellon is responsible for overseeing the trust administration duties, while Coinbase Custody Trust company holds the majority of the trust’s assets in the form of bitcoin.
Pando Asset’s representative opted for silence amidst a flurry of inquiries, refraining from making any immediate statements on the subject.
The SEC is currently in the middle of a large increase in filings, as about twelve well-known financial companies such as BlackRock, Fidelity, and Invesco, have submitted applications for Bitcoin ETFs to be presented live.
The SEC finds itself at a crucial juncture as it faces unexplored waters while contemplating the endorsement of these investment vehicles, causing an upswing in curiosity.
Spto Crypto ETFs Internationally
In recent years, spot crypto ETFs have received approvals from regulatory bodies in Canada, Brazil, and the Netherlands on an international scale. However, crypto exchange-traded notes (ETNs) that are backed by assets including bitcoin have been in the market for a long time.
In an aim to expand its European crypto products to the US, Pando Asset plans to issue three ETPs listed on the SIX Swiss Exchange. Among these, an interesting offering includes an ETP that distributes investments across a variety of six crypto assets namely bitcoin, ether, Binance coin, Cardano, Solana, and polka dots.
By January 10, the SEC is expected to announce its decision regarding the Ark 21Shares Bitcoin ETF, a highly-anticipated ruling. Experts in the field are speculating that if approved, this could pave the way for numerous similar products, creating a massive opportunity.
Bloomberg Intelligence analysts have provided a strong forecast, stating that there is a 90% chance of approval. This prediction signifies a significant turning point in the development of investment prospects for cryptocurrency in the United States.
Frequently Asked Questions:
1. What role does Pando Asset play in the market for US Spot Bitcoin ETFs? Can you provide information about Pando Asset and its involvement in this area?
Recently, Pando Asset, a Swiss-based company, is another entrant into the U.S. race for a Bitcoin ETF. The purpose behind this is to obtain clearance from the US SEC (Securities and Exchange Commission) for the introduction of the Pando Asset Spot Bitcoin Trust.
2. What are the key features of the Pando Asset Spot Bitcoin Trust and how can it be defined?
Pando Asset has come up with a groundbreaking concept called the Pando Asset Spot Bitcoin Trust. This innovative fund is focused on maintaining Bitcoin as its main asset, and it has partnered with Coinbase Custody Trust to ensure secure custody of the cryptocurrency. To manage the trust administration responsibilities, BNY Mellon has been entrusted with a vital role.
3. What strategies does Pando Asset have in place to successfully manoeuvre through the regulatory framework concerning spot Bitcoin ETFs in the United States?
Pando Asset plans to make use of its extensive knowledge in European cryptocurrency products by introducing its new spot Bitcoin ETF in the United States. This will be done through a range of three exchange-traded products (ETPs) available on the SIX Swiss Exchange.
4. How does the SEC view spot Bitcoin exchange-trade fund applications at present?
Currently, the Securities and Exchange Commission (SEC) is scrutinizing various proposals for Bitcoin exchange-traded funds (ETFs).
5. In what ways has the global environment for spot crypto ETFs changed, and which nations have granted them approval?
Canadian, Brazilian, and Dutch regulators have given their seal of approval to spot cryptocurrency exchange-traded funds (ETFs), while exchange-traded notes (ETNs) based on cryptocurrencies have demonstrated a lengthier presence in the financial market.
6. Regarding the Pando Asset Spot Bitcoin Trust and other applications, what is the anticipated timeline for the SEC to provide a decision?
By January 10, we eagerly await the SEC’s verdict concerning the Ark 21Shares Bitcoin ETF proposal. If it proves favorable, this ruling may pave the way for the endorsement of several spot Bitcoin ETFs.
7. How do industry experts and analysts assess the probability of the SEC approving spot Bitcoin ETFs?
Analysts at Bloomberg Intelligence have put the possibility of SEC approval for spot Bitcoin ETFs at 90%. In case this happens, it will be a milestone in the progress of investment prospects of cryptocurrency within the United States.
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