A group of former Citigroup executives is planning to introduce bitcoin-backed securities that they claim do not require approval from the U.S. Securities and Exchange Commission (SEC). Receipts Depositary Corp. (RDC) will offer depositary receipts similar to American depositary receipts (ADRs), which represent foreign stocks on U.S. equity exchanges. These new receipts, known as “BTC DRs,” will be available to institutions and will be cleared through the Depository Trust Company (DTC), according to a press release issued on Thursday.
RDC intends to offer bitcoin depositary receipts to investors through transactions that are exempt from registration under the Securities Act of 1933. The company plans to commence the offering in the coming weeks, as stated in the press release. Ankit Mehta, co-founder and CEO of RDC, highlighted the advantages of using depositary receipts, such as their established structure, direct ownership of the underlying asset, and ease of inclusion in institutional products.
The goal of RDC is to address the institutional demand for bitcoin investments that may not be met by a spot exchange-traded fund (ETF). It is widely anticipated that the SEC will soon approve the listing of a spot BTC ETF in the United States. However, unlike shares in bitcoin ETFs, which can be redeemed for cash, depositary receipts would provide investors with direct ownership of bitcoin. Mehta shared this information with Bloomberg, which initially reported the news. Anchorage Digital Bank National Association will serve as the custodian for the underlying bitcoin.
The introduction of bitcoin-backed securities by RDC could have significant implications for the trading of BTC. While the market appears ready to accommodate the potential influx of BTC trading resulting from the approval of bitcoin ETFs, the availability of depositary receipts could further enhance the accessibility and attractiveness of bitcoin investments.
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