PANews reported on April 27 that in response to the DTCC's document that cryptocurrency investment tools will not be able to be used as collateral starting April 30, crypto research firm 10x Research pointed out that Bitcoin is hitting new lows - there seems to be a new downward trend. This is where the DTCC statement may have an impact. 10x Research wrote an article on the framework of a self-reinforcing Bitcoin mechanism on April 4, arguing that there is a risk that ETF fund inflows will be reversed to some extent.
Earlier news, according to a document released by DTCC (Depository Trust and Clearing Corporation of America), starting from April 30, 2024, as part of the annual credit line renewal, DTCC will implement the following changes to modify the collateral value of certain securities, which may affect the position value applicable to Collateral Monitor:
1. The collateral valuation for corporate notes or bonds rated B1 to B3 will be increased from 50% to 70%;
2. Any ETF or other investment vehicle that includes Bitcoin or any other cryptocurrency as an underlying investment will not be given collateral value and will therefore be subject to a 100% haircut.
