Bitcoin has been around for 18 years. Yesterday, the SEC finally wrote it a 760-page “custody manual”: going forward, U.S. investment advisers and funds can legally hold clients’ coins themselves, and they can even self-custody when they can’t find a custodian.
Previously, compliant capital that wanted to touch crypto had no custodians to rely on, so they could only take the long way around by buying ETFs and paying management fees. Now that the proposal is out, it’s like the authorities themselves have handedly torn down the “custody” wall—though note: it’s a proposal, not yet effective, and there’s still a 60-day public comment period.
The most ruthless part is the line “self-custody is allowed if no qualified custodian can be found”: during the window when new coins are launched and custodians haven’t added support yet, investment advisers no longer have to sit around waiting.
Which side are you on—compliant funds holding coins directly, with self-custody becoming an institutionalized norm, or ETFs with their tax and liquidity convenience that no one else can truly replace?
#Bitcoin #SEC
Previously, compliant capital that wanted to touch crypto had no custodians to rely on, so they could only take the long way around by buying ETFs and paying management fees. Now that the proposal is out, it’s like the authorities themselves have handedly torn down the “custody” wall—though note: it’s a proposal, not yet effective, and there’s still a 60-day public comment period.
The most ruthless part is the line “self-custody is allowed if no qualified custodian can be found”: during the window when new coins are launched and custodians haven’t added support yet, investment advisers no longer have to sit around waiting.
Which side are you on—compliant funds holding coins directly, with self-custody becoming an institutionalized norm, or ETFs with their tax and liquidity convenience that no one else can truly replace?
#Bitcoin #SEC