Former Citigroup Execs Plan to Launch Bitcoin Securities Without SEC Approval

A group of ex-Citigroup executives, alongside Franklin Templeton, BTIG, and Broadhaven Ventures, aims to introduce Bitcoin-backed securities without requiring approval from U.S. regulators.

Innovative BTC Exposure:

Bitcoin Depositary Receipts Unveiled

Receipts Depositary Corporation (RDC) pioneers Bitcoin depositary receipts (BTC DRs), akin to American depositary receipts, simplifying foreign stock representation.

Strategic Institutional Access:

RDC's BTC DRs for U.S. Market Access

RDC's BTC DRs target institutional access to Bitcoin securities within the regulated U.S. market infrastructure. The Depository Trust Co. facilitates direct ownership, streamlining the U.S. clearance process.

Conversion Tool for Financial Entities:

Ankit Mehta Emphasizes Conversion Role

Ankit Mehta, RDC's CEO and Citigroup alumnus, underscores the platform's role as a conversion tool for hedge funds, family offices, and institutional investors. It enables Bitcoin conversion into DTC-eligible securities.

Operational Setup:

Broadridge and Anchorage Play Key Roles

Broadridge Corporate Issuer Solutions acts as the transfer agent, while Anchorage Digital Bank National Association manages custody of the underlying Bitcoin.

Strategic Positioning:

RDC's Offering as Complementary to Bitcoin ETFs

Supported by investors like Franklin Templeton, BTIG, and Broadhaven Ventures, RDC positions its product as complementary to potential Bitcoin ETFs, anticipating U.S. Securities and Exchange Commission approval.

Ex-Citigroup Team Expertise:

Mehta and Co-founders with Citigroup Background

Mehta and co-founders Bryant Kim and Ishaan Narain, former Citigroup members, bring expertise from the depositary-receipt team to RDC.

Market Context:

Bitcoin Surpasses $45,000 Amid ETF Anticipation

Bitcoin's surge beyond $45,000 coincides with increased optimism about SEC approval for direct-investment Bitcoin ETFs.

Spot ETF Approval Scenario:

Potential SEC Decision Impact on Spot Bitcoin ETFs

Bitcoin depositary receipts offer institutions direct Bitcoin ownership, distinct from cash-redeemed BTC ETFs. Spot Bitcoin ETF approvals remain a market focus amid heightened new year trading activities.

SEC's Approach:

SEC's Likely Seek for Further Evaluation

Bloomberg ETF analyst Eric Balchunas suggests that a rejection of a spot Bitcoin ETF this month might be the SEC seeking additional time for evaluation, rather than an outright denial.

Probability and Evaluation:

Slim Approval Chances, SEC's Thorough Evaluation

While approval chances might be slim, the SEC's decision appears geared towards further evaluation rather than a definitive dismissal of the concept.