The competition for a Bitcoin exchange-traded fund (ETF) is heating up in the cryptocurrency industry. Recently, a new player has joined the race: Pando, which has become the 13th bidder to obtain approval from the U.S. Securities and Exchange Commission (SEC). This move not only marks the intensification of market competition, but also heralds a new stage in the financialization of cryptocurrencies.
Pando's bid and market impact
On November 29, 2023, Pando submitted its S-1 form for the Asset Spot Bitcoin Trust to the SEC, a step essential for registering securities in the U.S. Pando’s move is an important development in the Bitcoin ETF space as it represents more institutional interest and confidence in the cryptocurrency market.
Pando's ETF aims to track the price of bitcoin by holding it through the custody arm of cryptocurrency exchange Coinbase. This model is similar to other bitcoin ETF bids, but Pando's participation has intensified competition in the market. As the 13th bidder, Pando joins the ranks of large investment institutions such as BlackRock, ARK Invest and Grayscale, all of which are vying for SEC approval.
Bloomberg ETF analyst Eric Balchunas expressed concern about Pando's application, raising the view that "there are more questions than answers" on Twitter and questioning why Pando submitted the application at this point in time. He expects the document to be approved on January 10, 2024, and expressed concern about Pando's ETF becoming one of the "members" of the Bitcoin ETF document.
BlackRock’s ETF Model Adjustment
Meanwhile, investment giant BlackRock is also adjusting its ETF model. On November 28, 2023, BlackRock met with the SEC to launch an updated ETF model based on the agency's feedback. In particular, BlackRock revised its redemption model to address the SEC's concerns about the balance sheet impact and risks of U.S. broker-dealers dealing with offshore crypto entities.
BlackRock's adjustment shows its sensitivity to market dynamics and the regulatory environment. The revised model allows offshore entities to obtain Bitcoin from Coinbase and prepay U.S.-registered broker-dealers in cash, so that broker-dealers do not need to handle Bitcoin directly. This strategic adjustment is intended to meet the SEC's requirements that ETFs must have a redemption model that makes issuers responsible for conducting Bitcoin transactions, thereby reducing the need for broker-dealers to use unregistered subsidiaries or third-party companies to handle Bitcoin.
Future Outlook for Bitcoin ETFs
Pando's participation and BlackRock's strategy adjustment reflect the rapid development and changing face of the Bitcoin ETF market. As more and more investment institutions join the competition, we can foresee that Bitcoin ETFs will become an important part of the cryptocurrency market.
However, market developments are also accompanied by uncertainty. Decisions by regulators, strategic adjustments by market participants, and investor responses to these changes will all shape the future of Bitcoin ETFs. In this field full of challenges and opportunities, maintaining a keen eye on market dynamics and responding flexibly will be the key to success for all participants.
in conclusion
The development of the Bitcoin ETF market shows the deepening trend of the financialization of digital currencies. With the entry of Pando and the strategic adjustments of large institutions such as BlackRock, market competition will become more intense. This not only provides new opportunities for investors, but also has a profound impact on the long-term development and acceptance of cryptocurrencies. Looking ahead, Bitcoin ETFs may become an important link in the financial market, affecting not only the cryptocurrency field, but also the entire financial system. #比特币etf #BTC $BTC
