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My thoughts on DTCC relate to being concerned that an organization as far back as 2016 if I recall has been studying blockchain and digital currencies, but still rates them at zero (100% haircut) against TradFi assets. #Bitcoin is still so early.
Saylor recently revealed there’s $40b in options open interests on MicroStrategy DTCC banned $btc ETFs as collateral My theory : institutions were pair trsding. Long spot ETFs, short $mstr DTCC doesn’t want another GameStop where large institutions are trapped short
DTCC has announced it will not allocate any collateral or offer loans for ETFs with exposure to Bitcoin or other cryptocurrencies https://t.co/jl3qZuPXJx
The Depository Trust & Clearing Corporation (DTCC) has announced that starting April 30, 2024, exchange-traded funds (ETFs) that include Bitcoin or other cryptocurrencies as underlying assets will be assigned zero collateral value. This policy means that these ETFs will be subject to a 100% haircut, effectively ruling out their use as collateral in securities lending. The decision has impacted the market, with Bitcoin's value dropping following the announcement. The DTCC is a key player in the securities transactions sector, settling the majority of such transactions in the United States.
