The Switzerland-based asset management firm Pando Asset AG has filed for a spot Bitcoin exchange-traded fund (ETF), as seen in a Nov. 29 filing, marking another addition to the growing list of such applications.
The filing is an S-1 registration statement resembling similar spot Bitcoin ETF applications from other asset managers. It describes a trust primarily made up of Bitcoin held by a custodian. The value of the trust is intended to match Bitcoin’s price performance before payment of the trust’s expenses and liabilities.
If approved, Pando’s ETF would be listed on Nasdaq under the ticker PBC. The Bank of New York Mellon (BNY Mellon) would act as the trust’s administrator, seemingly due to the fact that Pando itself is a foreign company not registered with or subject to regulation by the SEC and some other U.S. agencies.
The filing also names Coinbase as a custodian. Many competing applicants have begun to include Coinbase in this role amidst market manipulation concerns.
Competitive risks
Like other spot Bitcoin ETF applicants, Pando acknowledged various risks inherent to offering such a fund. However, it also described specific risks that it faces due to the fact that it is in competition with those other applicants. Pando acknowledged that if the SEC approves several or all other pending applications, its own spot Bitcoin ETF could “fail to acquire substantial assets, initially or at all.”
Pando added that competing providers may be able to charge a lower fee and commercialize their offering more quickly and effectively than Pando itself. Pando said this could affect its ability to compete, in turn affecting finances and ability to invest in such a way that minimizes the risk of operating events, errors, and other losses.
Furthermore, Pando said that its fund could fail to gain sufficient liquidity in secondary markets. This could see the fund trade at a premium or discount, meaning that the fund would no longer match Bitcoin’s price performance.
There are currently more than ten pending spot Bitcoin ETF applications with the SEC. Other notable applicants include BlackRock, Fidelity, and Ark Invest.