Ex-Citigroup Executives Launch Bitcoin-backed Securities Without SEC Constraints
A group of former Citigroup Inc. executives has announced plans to launch Bitcoin-backed securities that are not subject to US Securities and Exchange Commission (SEC) regulations. This news has generated significant excitement in the cryptocurrency market, particularly as anticipation grows for a Bitcoin Spot ETF.
Bitcoin Depository Receipts: A Similarity to American Depositary Receipts
The newly introduced Bitcoin depository receipts (BTC DRs) bear a striking resemblance to American depositary receipts for foreign stocks. Receipts Depositary Corporation (RDC), the startup behind BTC DRs, intends to offer these securities exclusively to qualified global institutional investors, bypassing the need for registration under the Securities Act of 1933.
Facilitating Institutional Access to Bitcoin Securities
RDC aims to provide institutions with access to Bitcoin securities through US-regulated market infrastructure, with approval from the Depository Trust Co. Ankita Mehta, co-founder of RDC and former Citigroup executive, explains that BTC DRs will serve as a conversion tool for asset owners such as hedge funds, family offices, and large institutional investors. This will allow them to convert their Bitcoin holdings into DTC-eligible securities and gain direct ownership in US clearances.
Key Players in RDC’s Offering
Broadridge Corporate Solutions will act as the transfer agent for RDC’s BTC DRs, while Anchorage Digital Bank National Association will serve as the custodian for the underlying BTC. RDC has garnered support from investors like Franklin Templeton, BTIG, and Broadhaven Ventures and plans to offer a complementary product to Bitcoin ETFs.
RDC’s Approval Offers Direct Bitcoin Ownership
With concerns mounting over the approval of a spot Bitcoin ETF, RDC’s Bitcoin DRs provide certified institutions with direct ownership of Bitcoin, distinguishing itself from cash-settled ETFs.
Bitcoin Price Drops
Currently, the price of Bitcoin has fallen by 5.23% in the past 24 hours and is trading at $42,955.06. This decline follows a weekly drop of 0.51%. The market cap has also decreased by 5.20%, reaching $841.50 billion. However, the trading volume has experienced a significant increase of 59.78% in the past 24 hours.
Hot Take: Ex-Citigroup Executives Launch Bitcoin-backed Securities Amidst Growing Anticipation for a Bitcoin Spot ETF
A group of ex-Citigroup executives has announced the launch of Bitcoin-backed securities that operate outside the regulations imposed by the US SEC. The introduction of these Bitcoin depository receipts (BTC DRs) has sparked excitement in the crypto market, especially as investors eagerly await the approval of a Bitcoin Spot ETF. RDC, the startup behind BTC DRs, aims to provide qualified global institutional investors with access to Bitcoin securities without requiring registration under the Securities Act of 1933. By offering direct ownership of Bitcoin through US-regulated market infrastructure, RDC sets itself apart from cash-settled ETFs and offers an alternative investment avenue for institutional players.
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