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DTCC announced the uncollateralized value of Bitcoin and cryptocurrency-related ETFs.
Change in Collateral Value
DTCC has announced that Bitcoin and cryptocurrency-related ETFs will no longer have collateral value when used as investments. These ETFs will be subject to a 100% "haircut," meaning they will no longer be considered as collateral. These changes will come into effect on April 30, 2024, and will affect the use of Bitcoin and cryptocurrency-related ETFs as collateral when applying for credit or financing through DTCC.
Impact on Credit and Financing
Entities will no longer be able to use Bitcoin or cryptocurrency-related ETFs as collateral when seeking credit or financing through DTCC. This announcement comes as institutions continue to heavily invest in cryptocurrency investment products, particularly Bitcoin ETFs. Daily inflows into the Bitcoin network, primarily driven by ETFs, have reached levels of $2 billion per day, similar to previous bull market periods. However, DTCC's changes will limit the use of these assets as collateral, potentially impacting the availability of credit and financing for entities involved in the cryptocurrency space. |
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Post time 7-5-2024 10:28:40