DTCC declares Bitcoin ETFs ineligible for collateral use in financial transactions.
The Depository Trust and Clearing Corporation (DTCC) has declared that Exchange-Traded Funds (ETFs) linked to Bitcoin will hold no collateral value. This decision affects their usability in securing loans or facilitating other financial operations where collateral is required. The DTCC, a key player in market clearing services, underpins this move with the intent to mitigate risks associated with digital assets.
In response to the DTCC's policy, starting April 30, 2024, all Bitcoin-linked ETFs will experience a total elimination of collateral value. While this ruling limits their use within DTCC's operations, it does not prevent other financial entities from accepting them as collateral, depending on their own risk assessments. Despite this, the overall market reaction shows a mixed sentiment, with some investors cautious about the potential liquidity constraints this could impose.
The broader implications of this policy could shape the landscape of Bitcoin investments. While it presents challenges, such as possible liquidity issues flagged by analysts, it also reflects the evolving regulatory and operational frameworks that surround digital assets. For Bitcoin enthusiasts and investors, staying agile and informed will be crucial as the market adapts to these changes.
#Bitcoin #ETFs #DTCC
oxhak / Ox HaK
npub1sxe…z7z7
2024-04-28 19:04:38
Author Public Key
npub1sxexewvzysc3affq4yzzh7w8e3udyujap2vlj7t6lkdg5dvhp24q4dz7z7Seen on
wss://relay.noswhere.comPublished at
2024-04-28 19:04:38Event JSON
{
"id": "b14715243e2d0e32b23e50e23fe0cc8924626e3eace0bc30638976020ab38ad2",
"pubkey": "81b26cb98224311ea520a9042bf9c7cc78d2725d0a99f9797afd9a8a35970aaa",
"created_at": 1714323878,
"kind": 1,
"tags": [
[
"t",
"Bitcoin"
],
[
"t",
"ETFs"
],
[
"t",
"DTCC"
]
],
"content": "DTCC declares Bitcoin ETFs ineligible for collateral use in financial transactions.\n\nThe Depository Trust and Clearing Corporation (DTCC) has declared that Exchange-Traded Funds (ETFs) linked to Bitcoin will hold no collateral value. This decision affects their usability in securing loans or facilitating other financial operations where collateral is required. The DTCC, a key player in market clearing services, underpins this move with the intent to mitigate risks associated with digital assets.\n\nIn response to the DTCC's policy, starting April 30, 2024, all Bitcoin-linked ETFs will experience a total elimination of collateral value. While this ruling limits their use within DTCC's operations, it does not prevent other financial entities from accepting them as collateral, depending on their own risk assessments. Despite this, the overall market reaction shows a mixed sentiment, with some investors cautious about the potential liquidity constraints this could impose.\n\nThe broader implications of this policy could shape the landscape of Bitcoin investments. While it presents challenges, such as possible liquidity issues flagged by analysts, it also reflects the evolving regulatory and operational frameworks that surround digital assets. For Bitcoin enthusiasts and investors, staying agile and informed will be crucial as the market adapts to these changes.\n\n#Bitcoin #ETFs #DTCC",
"sig": "4e7f0d8f8b567f059a3a6261767656c545a710802c527528f2890076c3a7ca5aa845fbe97c250337a86b6377ee2393adfd27e994fdbd963ad792d42242095b1b"
}