The Depository Trust and Clearing Corporation (DTCC) has declared that exchange-traded funds (ETFs) linked to Bitcoin (BTC) or cryptocurrencies have no collateral value as investments.
In an announcement, the DTCC, which provides clearing and settlement services to the financial markets in the US, says digital asset-linked ETFs will be subject to a 100% “haircut.”
“No collateral value will be given for any ETF or other investment vehicle that includes Bitcoin or any other
cryptocurrency as an underlying investment, hence will be subject to a 100% haircut.”
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According to the announcement, the DTCC’s new changes will be effective April 30, 2024, and will presumably affect position values on the company’s collateral monitor.
After going into effect, the changes mean that entities cannot use Bitcoin or crypto-linked
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