2024

Bitcoin

April

The Depository Trust and Clearing Corporation (DTCC) has <a href="https://www.dtcc.com/-/media/Files/pdf/2024/4/26/B20002-24.pdf" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">announced</a> that from the 30th of April 202, they would not permit exchange-traded funds (ETFs) with Bitcoin or cryptocurrency exposure to be used as collateral.
DTCC is a company that provides clearing and settlement services across financial markets and every year during its renewal of credit facilities it makes changes to remove all collateral value given to ETFs that have Bitcoin or other cryptocurrencies as underlying assets.
The notice stated that as from April 30th, 2024 onwards, no collateral will be allocated by DTCC against any ETF having exposure towards Bitcoins or any other type of cryptocurrencies thereby reducing their assigned collateral value by a hundred percent
However, K.O. Kryptowaluty has explained that this rule applies exclusively to inter-entity settlements within the DTCC’s line of credit system; thus it does not affect brokerage firms’ use crypto ETFs as collaterals in different lending activities subject only to individual risk tolerance policies.
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 The DTC system, or Depository Trust Company, is a key component of the financial infrastructure of the United States, acting as the central securities depository. DTC is part of a larger organization called the Depository Trust &amp; Clearing Corporation (DTCC) what you write…— K.O Kryptowaluty (@KO_Kryptowaluty) <a href="https://twitter.com/KO_Kryptowaluty/status/1784062739867906102?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">April 27, 2024</a>
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This year alone Goldman Sachs saw renewed interest in the crypto market among clients following the introduction of spot Bitcoin ETFs in US earlier this year despite DTCC distancing itself from such investments.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 Also Read: <a href="https://www.cryptotimes.io/2024/04/27/nigerian-govt-denies-ordering-freeze-on-crypto-accounts/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Nigerian Govt Denies Ordering Freeze on Crypto Accounts</a>
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DTCC Bars Bitcoin-linked ETFs as Collateral

The Crypto Times

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