Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
Pando Asset AG, an asset management company based in Switzerland, has submitted an application for a spot Bitcoin (CRYPTO: BTC) exchange-traded fund (ETF), as indicated in a Wednesday filing.
This move adds to the increasing number of similar applications in the industry.
The application, an S-1 registration statement, outlines a trust that primarily consists of Bitcoin, managed by a custodian.
The aim is for the trust's value to reflect the price movements of Bitcoin, minus the trust's expenses and liabilities.
The proposed ETF by Pando, if sanctioned, would be traded on the Nasdaq stock exchange under the symbol PBC. The Bank of New York Mellon (NYSE: BK) is set to serve as the administrator of the trust.
This choice is likely influenced by Pando's status as a foreign entity, not registered with or regulated by the SEC and certain other U.S. regulatory bodies.
Coinbase (NASDAQ: COIN) is named as the custodian in the filing, a choice that is becoming increasingly common among Pando's competitors, particularly in light of concerns about market manipulation.
Addressing Competitive Challenges
In its filing, Pando Asset AG recognizes various challenges associated with launching such a fund, including specific competitive risks.
Also Read: Wormhole's Astronomical Funding Round: A Giant Leap For Blockchain Interoperability
The company admits that if the SEC approves, Pando's ETF might struggle to accumulate significant assets, either initially or in the long term.
Pando also notes the possibility that its competitors might be able to offer lower fees and market their products more efficiently and quickly.
This could impact Pando's competitive edge, financial health, and ability to invest in ways that mitigate operational risks, errors, and other potential losses.
Moreover, Pando expresses concern over the potential for its fund to lack adequate liquidity in secondary markets. This scenario could lead to the fund trading at a premium or discount, deviating from its goal of mirroring Bitcoin's price performance.
Currently, the SEC has more than 10 pending applications for spot Bitcoin ETFs, with notable applicants including industry giants like BlackRock Inc. (NSE: BLK), Fidelity, and Ark Invest.
Read Next: Debt-Saddled Zipmex Looks To Restructure, Irks Creditors With Compensation Offer
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.