DTCC Declines Collateral for Crypto-Linked ETFs, Amid Broader Market Shifts

DTCC Declines Collateral for Crypto-Linked ETFs, Amid Broader Market Shifts



In a significant policy shift, the Depository Trust & Clearing Corporation (DTCC), a key player in financial services providing essential clearing and settlement services, has declared that it will not assign any collateral value to exchange-traded funds (ETFs) with exposure to Bitcoin or other cryptocurrencies. This decision, effective April 30, 2024, will also prevent the extension of loans against such financial instruments.



The announcement comes as part of the DTCC's annual review of its line-of-credit facilities, where it has decided to recalibrate the collateral values assigned to certain securities. This recalibration will see cryptocurrencies entirely excluded from collateral consideration, marking a 100% reduction in their collateral value. This move could reshape the valuation dynamics within the collateral monitoring


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