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IPFS News Link • Bitcoin

DTCC Announces Exclusion of Collateral for Crypto ETFs, Impacting Market Dynamics

• Cryptodaily

Effective April 30, 2024, DTCC will enact alterations to collateral values for specific securities during its annual line-of-credit facility renewal, potentially impacting position values in the collateral monitor.

This announcement made on April 26 signifies that ETFs and analogous investment instruments backed by Bitcoin or other cryptocurrencies will be deprived of any collateral value, resulting in a complete reduction of 100% in their collateral value.

However, as cryptocurrency enthusiast K.O. Kryptowaluty elucidated in a post, this decision will solely affect inter-entity settlement within the line of credit system.