Ex-Citigroup _s to launch alternative Bitcoin security amid ETF uncertainty

2024-01-04 10:51:50

In the face of ongoing uncertainty regarding the approval of spot Bitcoin ETFs, a new strategy has emerged from a group of former Citigroup utives

The collective intends to introduce a novel Bitcoin financial product, a Bitcoin Depositary Receipt (BDR), that sidesteps the need for SEC approval. Recent reports have unveiled that Receipts Depositary Corporation (RDC), established by these ex-Citigroup leaders, is preparing to launch a financial instrument similar to American Depositary Receipts (ADRs) used for foreign stocks

RDC’s official announcement shared plans to release the inaugural series of BDR, targeting qualified international institutional investors. According to the Securities Act of 1933, U.S. Depositary Receipts are exempt from registration with the SEC, enabling investors to participate in Bitcoin-related securities through regulated U.S. markets and to settle transactions via the Depository Trust Company.

Despite the growing interest of traditional financial institutions in Bitcoin, regulatory barriers have made some cautious. Depositary receipts such as these present an opportunity to bridge this gap, offering direct Bitcoin exposure without the regulatory complexities.

It has been noted that Citigroup had previously toyed with a similar concept in 2018. The co-founders of RDC, who were part of Citigroup’s digital asset depositary receipt initiative, clarified that RDC’s current project is distinct and independent from Citigroup’s past endeavors.

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