The Depository Trust and Clearing Corporation (DTCC) has stated that exchange-traded funds (ETFs) linked to Bitcoin (BTC) or cryptocurrencies have no collateral value as investments.
In a statement, DTCC, which provides clearing and settlement services to US financial markets, said ETFs linked to digital assets will be subject to a 100% “haircut”.
“No guarantee value will be given for any ETF or other investment vehicle including Bitcoin or any other
the cryptocurrency as the underlying investment will therefore be subject to a 100% haircut.
According to the announcement, the new changes made by the DTCC will take effect on April 30, 2024 and will likely affect the value of positions on the company’s collateral monitor.
After coming into effect, the changes mean that entities cannot use Bitcoin or cryptocurrency-linked ETFs as collateral when applying for credit or financing through the DTCC.
In March, digital asset manager CoinShares said institutions invested a new weekly record of $2.9 billion in crypto investment products, driven primarily by Bitcoin ETFs.
Channel analyst Willy Woo recently told his million followers on social media platform per day, which is equivalent to the level of the last one. bull market in its own right.
“This time it should go much higher. Spot ETFs (exchange-traded funds) significantly open up entry channels.
Inflows are measured on-chain, so this includes all investors. It’s about 90% accurate. It is also telling that ETFs currently represent around 30% of total flows.
Specifically, you take the daily change in entity-adjusted realized capitalization. Entity-adjusted Real Cap is the price paid for each BTC when passed to current HODLers, it is a measure of the USD stored in the network.
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Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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