Invest in Web 3.0 with BlackRock's revised ETF model.
Bitcoin ETF race gets 13th entrant, BlackRock revises ETF model

Swiss asset manager Pando Asset has unexpectedly become a contender in the race for the approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States. On the same day, BlackRock, a giant investment firm, met with the country’s securities regulator to present an updated ETF model based on the agency’s feedback.

Pando submitted a Form S-1 to the Securities and Exchange Commission for the Pando Asset Spot Bitcoin Trust. This trust, like other ETF bids, seeks to track Bitcoin’s price, with the custody arm of the crypto exchange Coinbase taking charge of holding Bitcoin on behalf of the trust. Pando is the 13th applicant vying for an approved spot Bitcoin ETF in the U.S., joining the likes of BlackRock, ARK Invest, and Grayscale.

Bloomberg ETF analyst Eric Balchunas took to Twitter to express his confusion as to why Pando’s filing came so late. He also raised the question of what it would mean should Pando’s ETF be among those that he predicted would be approved on Jan. 10. “What does that say about fair play and even society as we know it?” he added.

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Balchunas and fellow Bloomberg ETF analyst James Seyffart have bet on Jan. 10 as the day all spot Bitcoin ETFs will be approved at once, as this is the day the SEC must deny or approve ARK Invest’s bid. However, Seyffart expressed his doubts that Pando’s ETF “is ready to go on [the] first day with the others but crazier things have happened I guess.”

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BlackRock meets with SEC to discuss ETF bid

On Nov. 28, the SEC held a meeting with BlackRock and Invesco executives to discuss their ETF bids, as per agency documents.

BlackRock proposed an adjustment to its redemption model to address the SEC’s worries from an earlier discussion on the impacts of balance sheet and dangers to U.S. broker-dealers dealing with offshore crypto entities.

Balchunas clarified the revision involves the offshore entity procuring Bitcoin from Coinbase and prepaying the U.S. registered broker-dealer in cash, which can’t manage Bitcoin directly.

Balchunas explained in a Nov. 17 X post that broker-dealers can’t participate in Bitcoin and the SEC was asking ETFs to have redemption models that “puts [the] onus on issuers to transact in Bitcoin and keeps broker-dealers from having to use unregistered subsidiaries or third party firms to deal [with] the BTC” to make money with web 3.0.

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