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A new way to access Bitcoin
US startup Receipts Depositary Corporation (RDC) announced on the 4th that it will begin offering the first Bitcoin Depositary Receipt (BTC DR).
We plan to issue the first BTC DR to qualified institutional investors in the coming weeks. Under securities laws, these depositary receipts are exempt from the requirement to register as an institutional buyer with the U.S. Securities and Exchange Commission (SEC).
American Depositary Receipts (ADRs) are securities used to trade the stocks of foreign companies in the U.S. market. An indication of ownership of securities, in which a U.S. bank takes custody of the stocks of a foreign company and issues ADRs.
Like ADRs, Bitcoin Depositary Receipts (BTC DRs) will be operated within a U.S.-regulated market infrastructure and will be cleared through DTC, a central depository.
Ankit Mehta, CEO of RDC, commented:
We are pleased to offer qualified institutional investors a regulated and secure means of access to digital assets through BTC DR. These products have been long awaited.
Depositary receipts have many advantages, including a proven structure, providing direct ownership of the underlying assets, and ease of integration into institutional products.
RDC is a company founded by former executives from financial giant Citigroup. Major US asset management firm Franklin Templeton is also an investor.
As various companies apply for Bitcoin spot ETFs, BTC DR is a new product that can provide investors with indirect access to Bitcoin.
What is Bitcoin ETF?
An Exchange Traded Fund that includes Bitcoin as an investment. An investment trust is a financial product that collects money from investors into a single fund and invests it in stocks, bonds, etc. The system is such that the investment results are distributed according to each investor’s investment amount. Among investment trusts, ETFs are listed on stock exchanges, so they can be bought and sold like stocks.
Virtual currency glossary
connection:
Learn about Bitcoin ETFs from the beginning: Explaining the advantages and disadvantages of investing and how to buy US stocks
How Bitcoin Depositary Receipts (BTC DR) work
In BTC DR, investment services company Broadridge Corporate Issuer Solutions acts as the agent for deposit procedures, and Anchorage Digital, a federally chartered crypto asset (virtual currency) bank, provides custody.
BTC DR is 100% backed by stored Bitcoin.
Accredited investors can own Bitcoin in a structure backed by technology, workflows, and counterparty relationships similar to traditional securities.
connection: Will a Bitcoin spot ETF finally be born in the US this year? Summary of 2024 virtual currency market predictions
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— CoinPost (virtual currency media) (@coin_post) December 21, 2023
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English (US) ·