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Citigroup has reportedly developed a new way for institutional investors to gain exposure to Bitcoin without owning any, Business Insider reports September 10.
Citiâs âDigital Asset Receiptâ
Citing âpeople familiarâ with the bankâs âplans,â 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).
âThe 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,â 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 bankâs new Bitcoin 00 trading option could represent the âmost direct wayâ to gain exposure without custody, the sources continued.
A Citigroup spokesperson declined to comment, Business Insider meanwhile adds.
Mixed Views On Wall Street Crypto Gimmicks
The 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 industryâs most respected names this year.
Discussing the prospective advent of an ETF and fellow Wall Street player Intercontinental Exchangeâs Bakkt regulated ecosystem, Andreas Antonopoulos argued that indirect exposure would ultimately have a detrimental effect on Bitcoinâs image.
âAn ETF is a multibillion-dollar ânot-your-keys-not-your-Bitcoinâ vehicle, so thatâs why Iâm against it and I wouldnât buy any,â he said last month.
âBut it is going to happen anyway.â
What do you think about Citigroupâs plans? Let us know in the comments below!
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