Receipts Depositary Plans to Issue Bitcoin Depositary Receipts
Date: 2024-01-05 Author: Dima Zakharov Categories: BLOCKCHAIN
In a groundbreaking development, Receipts Depositary Corporation (RDC) is set to launch Bitcoin Depositary Receipts (BTC DR) in the United States, without the necessity of approval from the Securities and Exchange Commission (SEC). These depositary receipts represent ownership rights to foreign assets, providing a regulated means for investors to access Bitcoin-related securities.
RDC, founded by a group of former Citigroup banking executives, aims to offer qualified investors the opportunity to hold Bitcoin without directly purchasing the cryptocurrency. This innovative investment instrument will take the form of American depositary receipts (ADRs) and will be subject to the regulations outlined in the 1933 Securities Act. Broadridge Corporate Issuer Solutions will serve as the transfer agent for these Bitcoin Depositary Receipts, while the National Digital Banking Association of Anchorage will be responsible for securely storing Bitcoin assets.
Compared to Bitcoin Exchange-Traded Funds (ETFs), which fall under SEC regulation, Bitcoin Depositary Receipts are not subject to the provisions of the 1933 Securities Act. This approach allows qualified investors to gain exposure to Bitcoin without the need for direct asset acquisition. However, Matrixport analyst Marcus Tilien has noted that the SEC may still pose a potential hurdle for the launch of spot Bitcoin ETFs in the future, despite this exciting development in the cryptocurrency market.
