A new Bitcoin ETF-like product is coming that does not require SEC approval

Days before the Bitcoin spot ETF decision was made, a group of former employees of Citibank announced that they would be launching a new product. Dubbed "Bitcoin Depositary Certificates," this product is similar to American Depository Certificates, also known as ADR.

ADRs are generally known as a financial instrument that allows foreign companies to be traded on American stock exchanges.

Exempt from securities law...

The name of this startup, which was founded by entrepreneurs, was decided as Warehouse Certificate Company, whose abbreviation is RDC. The company plans to issue its first products, "Bitcoin Depositary Certificates," exempt from the U.S. securities law of 1933.

In the first place, the products will be offered to global and institutional investors.

"A chance to invest in Bitcoin safely"

In the official statement made by the company, it was stated that this product will give corporate companies the chance to invest "directly" in Bitcoin and the following statements were used:

"From hedge funds to family offices, from large corporations to institutional investors, we will act as a vehicle that wants to take their Bitcoin and turn it into an investment contract approved by the DTC."

The Depository Trust Company (DTC), a U.S.-based organization referred to as DTC in the statement, provides an infrastructure for the secure storage and transfer of financial assets.

Bitcoin bank to store in Anchorage

In the statement, it was also informed that the support Bitcoins storage service will be provided by Anchorage, also known as the crypto bank. In addition, it was noted that the company received investments from companies such as Franklin Templeton, BTIG and Broadhaven Ventures.

As it is known, Franklin Templeton, one of the largest management companies, is among the companies that have applied for Bitcoin spot ETFs.

Prior to founding RDC, Bryant Kim, Ishaan Narain and Ankit Mehta were directors of Citi Group's warehouse certificates department.

"Direct investment in Bitcoin without buying Bitcoin!"

Speaking to Bloomberg, Mehta, one of the founders, said, "Compared to Bitcoin ETFs, depository certificates allow qualified investors to invest directly in Bitcoin, and in fact, simply buying Bitcoin and turning to this investment is not the first choice for many institutional firms."

Published: January 4, 2024 13:20