2018-9-10 16:00 |
Citigroup has reportedly developed a new way for institutional investors to gain exposure to Bitcoin without owning any, Business Insider reports September 10.
Citi’s ‘Digital Asset Receipt’Citing “people familiar” with the bank’s “plans,” the publication reveals the US giant is aiming to leverage a version of traditional finance tool the American Depository Receipt (ADR) for Bitcoin, creating the Digital Asset Receipt (DAR).
“The foreign stock is held by a bank, which then issues the depository receipt. In this case, the cryptocurrency is held by a custodian and the DAR is issued by Citigroup,” it explains referencing the anonymous sources.
Citi had been notably less vocal about its cryptocurrency stance than many of its Wall Street peers such as Goldman Sachs, like many banking institutions remaining fixated on Blockchain innovation.
One of the largest issuers of ADRs, which it has issued since the 1920s, the bank’s new Bitcoin 00 trading option could represent the “most direct way” to gain exposure without custody, the sources continued.
A Citigroup spokesperson declined to comment, Business Insider meanwhile adds.
Mixed Views On Wall Street Crypto GimmicksThe rumors come at a timely juncture for cryptocurrency markets. As Bitcoin exchange-traded funds (ETFs) remain a hot topic among regulators, Sunday saw US body the Securities and Exchange Commission (SEC) issue an unexpected temporary suspension of two crypto-related exchange-traded notes (ETNs).
As Bitcoinist recently reported, the whole area of non-custodial institutional crypto trading has come in for a cold reception from some of the industry’s most respected names this year.
Discussing the prospective advent of an ETF and fellow Wall Street player Intercontinental Exchange’s Bakkt regulated ecosystem, Andreas Antonopoulos argued that indirect exposure would ultimately have a detrimental effect on Bitcoin’s image.
“An ETF is a multibillion-dollar ‘not-your-keys-not-your-Bitcoin’ vehicle, so that’s why I’m against it and I wouldn’t buy any,” he said last month.
“But it is going to happen anyway.”
What do you think about Citigroup’s plans? Let us know in the comments below!
Images courtesy of Shutterstock
The post Citigroup Creates New New Non-Custodial Bitcoin Product appeared first on Bitcoinist.com.
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