The Depository Trust & Clearing Corporation (DTCC) has announced that starting April 30, 2024, exchange-traded funds (ETFs) that include Bitcoin or other cryptocurrencies as underlying assets will be assigned zero collateral value. This policy means that these ETFs will be subject to a 100% haircut, effectively ruling out their use as collateral in securities lending. The decision has impacted the market, with Bitcoin's value dropping following the announcement. The DTCC is a key player in the securities transactions sector, settling the majority of such transactions in the United States.
My thoughts on DTCC relate to being concerned that an organization as far back as 2016 if I recall has been studying blockchain and digital currencies, but still rates them at zero (100% haircut) against TradFi assets. #Bitcoin is still so early.
Saylor recently revealed there’s $40b in options open interests on MicroStrategy DTCC banned $btc ETFs as collateral My theory : institutions were pair trsding. Long spot ETFs, short $mstr DTCC doesn’t want another GameStop where large institutions are trapped short
DTCC has announced it will not allocate any collateral or offer loans for ETFs with exposure to Bitcoin or other cryptocurrencies https://t.co/jl3qZuPXJx
DTCC announces it will not allocate collateral to Bitcoin or cryptocurrency-related ETFs, nor extend loans against them, effective April 30, 2024. https://t.co/qVotUoc0y1
Bitcoin falls after DTCC rules out collateral for bitcoin-linked ETFs https://t.co/k4RcCTkvWS
DTCC announces zero collateral value for Bitcoin-exposed ETFs. https://t.co/qVotUocynz
The DTCC says that starting next Tuesday ETFs that have Bitcoin or any other cryptos will have zero collateral value for loans. https://t.co/GNZhWmZGkn https://t.co/haYsh0Oh3D
Nothing to see here: With effect from 30th April, ETFs that have the digital garbage or any other crypto as an underlying asset will be attributed zero collateral value. https://t.co/ssMzMDadFc
DTCC: No collateral value will be given for any ETF or other investment vehicle that includes Bitcoin or any other cryptocurrency as an underlying investment, hence will be subject to a 100% haircut. DTCC settled the vast majority of securities transactions in the United States.…