While everyone is still worrying about when the U.S. Securities and Exchange Commission (SEC) will approve a Bitcoin spot ETF, a group of former Citigroup executives plan to issue Bitcoin depositary receipts (Bitcoin depositary receipts) to qualified institutional investors. This product There is no need to register under the Securities Act of 1933, that is, it can be issued without SEC approval, allowing investors to directly own Bitcoin.
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ToggleWhat are ADRs (American Depositary Receipts)?
ADR is the abbreviation of American Depositary Receipts, which refers to the stock certificates of listed companies outside the United States that are listed in the United States. The one that everyone is most familiar with is TSMC ADR. TSMC issued ADR in the United States in 1997 with the stock code TSM. It directly packaged some of the stocks issued by TSMC in Taiwan into ADR, making it easier for American investors to buy. Stocks of Taiwanese companies can also allow Taiwanese companies to increase their visibility and raise funds in the U.S. market.
ADR analysis: Ark continues to be optimistic about the AI industry and buys Taiwan Semiconductor Manufacturing Co., Ltd. ADR (TSM)
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Receipts Depositary Corporation founded by former Citi executive
Receipts Depositary Corporation (RDC), a startup founded by several former Citi executives, said it plans to issue its first batch of Bitcoin depositary receipts to qualified institutional investors. This Bitcoin Depositary Receipt (BTC DR) product allows investors to obtain Bitcoin securities through a U.S.-regulated market infrastructure and settle them through a custodial trust company, and its Bitcoin custody is provided by Anchorage Digital Bank National Association is responsible.
RDC is backed by investors including Franklin Templeton, BTIG and Broadhaven Ventures.
Bitcoin Depository Receipt (BTC DR)
According to its press release , RDC expects to issue its first batch of BTC DR to qualified institutional buyers (QIBs) in the coming weeks, and the transactions will not require registration under the Securities Act of 1933. BTC DR follows the same structure as American Depository Receipts (ADRs), and like ADRs, BTC DR operates within a US-regulated market infrastructure and is cleared through a Depository Trust Company (DTC). Its products have obtained CUSIP and ISIN securities numbers.
Ankit Mehta, co-founder and CEO of RDC, said:
In contrast to Bitcoin ETFs, which will be redeemed for cash, depositary receipts provide qualified institutions with direct ownership of Bitcoin.
He added that buying Bitcoin directly is not the first choice for some regulated institutions because the crypto market faces challenges such as security risks and regulatory uncertainty. Some of these challenges are similar to those faced by Americans investing in foreign companies, and are mitigated by ADRs.
Comparing Bitcoin Depository Receipts to ETFs and other products
RDC's model requires that all BTC DR be 100% supported by custodian Bitcoin and cannot be lent or pledged. BTC DR can directly own the underlying assets and is fully fungible, representing a direct claim to the custody of Bitcoin while reducing the counterparty credit risk of the issuing depository institution. BTC DR leverages existing workflows and leverages the existing securities ecosystem to provide robust risk management and asset protection.
ABMedia also compiled the relevant comparisons between Bitcoin depositary receipts, Bitcoin spot ETFs and direct Bitcoin holdings in the following table:
