Bitcoin-DR instead of BTC-ETF: How SEC should no longer be a hurdle
A group of former Citi employees is entering the crypto market stage with an innovative approach: their product, “Bitcoin Depository Receipts (Bitcoin-DR),” promises institutional investors an alternative to the traditional Bitcoin ETF. The start-up, Receipts Depositary Corp. (RDC), aims to attract global companies and institutional investors with BTC-DR.
Bitcoin-DR instead of Bitcoin ETF:
The idea behind “Bitcoin-DR” is to offer investors a direct way to invest in Bitcoin without having to wait for SEC approval. Inspired by the American Depository Receipts (ADRs), a proven financial tool for foreign companies on US stock exchanges, RDC plans to bridge institutional investors and the world of cryptocurrencies.
The company emphasizes that it will act as a tool for a wide range of organizations, from hedge funds to family offices to large corporations. The focus is on converting Bitcoins into an investment contract approved by the Depository Trust Company (DTC).
How the SEC should no longer be a hurdle
Anchorage, the renowned crypto bank, will provide the supporting asset, namely the secure storage and transfer of Bitcoins. The participation of well-known companies such as Franklin Templeton, BTIG and Broadhaven Ventures shows the trust in the innovative Bitcoin DR project.
RDC’s founders, Bryant Kim, Ishaan Narain and Ankit Mehta, bring their experience from Citi Group. Especially from the warehouse certificate department. Their approach, which emphasizes direct access to Bitcoin, stands out from traditional liquid Bitcoin ETFs. Ankit Mehta explains to “ Bloomberg ”: “Compared to liquidable Bitcoin ETFs, Bitcoin DRs allow qualified investors to invest directly in Bitcoin. Simply buying Bitcoin and turning to this investment is not the first choice for many institutional companies.”
The future of RDC and its “Bitcoin-DR” remains to be seen. In a world that is increasingly integrating cryptocurrencies, such innovative approaches could open new doors for institutional investors and further develop the crypto market.