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Cryptocurrency markets are drawing the attention of trillion-dollar asset managers, prompting them to take action. Following BlackRock’s move in June, other potential issuers have also submitted their applications to the SEC. Today, a European crypto ETP issuer has applied to the SEC.
New Spot Bitcoin ETF Application
Pando Asset Management, which was late to the spot Bitcoin ETF game, has now filed an application with the SEC. Currently, there are 13 different applications awaiting SEC approval. Giants like Fidelity and BlackRock face a lot of competition, which suggests that in the event of mass approval, companies may need to allocate significant budgets for marketing to attract more customers. The good news is that the more Bitcoin ETFs garner interest, the greater the supply shortage on exchanges will grow.
Pando Asset AG’s application indicates that Coinbase Custody Trust Company will provide custody services, as it does for others. The Bank of New York Mellon will act as the trust administrator. There were ridiculous rumors about BlackRock stating that “the institution’s application talks about these risks.” We had mentioned that these risk disclosures are present in all spot Bitcoin ETF applications. Yes, Pando is also necessarily mentioning these risks.
For example, some risks include:
- The trading prices of many crypto assets, including Bitcoin, have experienced and may continue to experience extreme volatility.
- Further declines in the trading prices of Bitcoin, including future extreme volatility, could have a significant negative impact on the value of the Shares, and the Shares could lose all or a significant portion of their value.
- The value of the Shares is subject to a number of factors related to the fundamental investment characteristics of cryptocurrency as a digital asset; the loss, theft, destruction, or compromise of private keys can lead to the permanent loss of the asset.
- Digital assets represent a new and rapidly evolving industry, and the value of the Shares is dependent on the acceptance of Bitcoin.
- Changes in the governance of a digital asset network may not receive enough support from users and miners, which could negatively affect the network’s ability to grow and respond to challenges.
And the list goes on. All of these are detailed risks that every ETF applicant must write for each underlying asset, even if they are a million-to-one possibility.
- Trillion-dollar managers eye cryptocurrency assets.
- Spot Bitcoin ETFs promise market growth and competition.
- Risk disclosures are a mandatory part of ETF applications.
