As a seasoned crypto investor with a deep understanding of the financial markets and the role players within them, I find the recent announcement by the Depository Trust and Clearing Corporation (DTCC) regarding the prohibition of Bitcoin or cryptocurrency ETFs as collateral from April 30, 2024, to be a significant development. DTCC is an integral part of the US financial infrastructure, serving as the central securities depository, and its decisions carry weight in the industry.
Starting on April 30, 2022, the Depository Trust and Clearing Corporation (DTCC) will no longer allow exchange-traded funds (ETFs) containing Bitcoin or other cryptocurrencies as collateral.
annually, DTCC, which is a leading provider of financial market clearing and settlement services, adjusts its credit facility renewals by eliminating the collateral value assigned to Exchange-Traded Funds (ETFs) with Bitcoin or other digital currencies as their base assets.
Starting on April 30, 2024, DTCC will no longer provide collateral for any Exchange-Traded Fund (ETF) with Bitcoin or other cryptocurrency exposure. Consequently, the value of collateral assigned to these ETFs will be effectively eliminated.
K.O. Kryptowaluty clarified that this rule pertains only to inter-entity transactions settling within the DTCC’s credit system, and it doesn’t impact how brokerage firms employ crypto ETFs as collateral in distinct lending operations, subject solely to their specific risk tolerance guidelines.
The Depository Trust Company (DTC), which is a significant part of the United States’ financial structure, serves as the central securities depository. It’s an essential component of the larger organization known as the Depository Trust & Clearing Corporation (DTCC).
— K.O Kryptowaluty (@KO_Kryptowaluty) April 27, 2024
As a crypto investor, I’ve noticed an increased buzz around the digital asset market this year, with many clients expressing renewed interest. This surge in demand can be attributed to the launch of spot Bitcoin ETFs in the US markets earlier this year. Despite the Distressed Settlement and Clearing Corporation (DTCC) expressing caution towards crypto investments, it hasn’t dampened the enthusiasm among potential investors.
Read More
Sorry. No data so far.
2024-04-27 15:48