Former Citigroup Executives to Launch Bitcoin-Backed Securities
A group of former executives from Citigroup Inc. are planning to introduce Bitcoin-backed securities that do not require approval from US regulators. These securities, called Bitcoin Depositary Receipts (BTC DR), will provide qualified institutions with direct ownership of BTC through the US regulated market infrastructure and will be cleared through Depository Trust Co. This is the first of its kind offering direct ownership of BTC to institutions.
Complementing the Bitcoin ETF
The RDC proposal aims to provide a product that complements the Bitcoin ETF by addressing the challenges faced by regulated institutions when purchasing Bitcoin, such as security risks and regulatory uncertainty. Ankit Mehta, co-founder and CEO of RDC, explains that their platform serves as a conversion tool for asset owners who want to convert their Bitcoin into a DTC-eligible security.
No SEC Approval Required
The BTC DR does not need approval from the US Securities and Exchange Commission (SEC), making it an attractive option for investors seeking exposure to cryptocurrency markets. With regulatory uncertainty surrounding the spot Bitcoin ETF and risk aversion in traditional financial markets, this new offering may provide institutional investors with an opportunity to enter the crypto market.
Hot Take: Former Citigroup Executives Launch BTC DR
A group of former Citigroup executives are introducing Bitcoin-backed securities called BTC DR, which offer direct ownership of BTC to qualified institutions. Unlike a Bitcoin ETF, these securities do not require approval from US regulators, making them an appealing option for investors looking to enter the crypto market. By addressing challenges faced by regulated institutions when purchasing Bitcoin, such as security risks and regulatory uncertainty, this new product could complement existing investment options and attract institutional capital into crypto markets.
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