How to interpret this news? The Americans are really good at making trouble, saying that Bitcoin, Ethereum and other crypto assets will have no collateral value in ETFs? This is really puzzling. You are doing a spot ETF of BTC and ETH. You say that this spot has no collateral value and is 100% discounted. Does that mean that the valuation of your ETF is zero? Then what are you doing? Besides, the value of Bitcoin and Ethereum is now recognized by the whole world. If you give me a Bitcoin now, I will give you 50,000 US dollars immediately without blinking an eye. Do you believe it? I bought it and threw it into Binance and made more than 10,000 US dollars. Do you believe it? How can the valuation be zero? If the valuation is zero, can you just give it to me? It's inexplicable. Why do you do such a thing early in the morning! I don't know if the early plunge has anything to do with this! Is it interesting to release all kinds of news all day long? I hope that the crypto market will return to the true value of the financial market as soon as possible and stop being troubled by these junk news.
DTCC: Starting April 30, Bitcoin or any crypto assets will have no collateral value
On April 27, DTCC (Depository Trust & Clearing Corporation) issued a new document stating that starting April 30, 2024, as part of the annual renewal of the credit line, DTCC will implement the following changes to modify the collateral value of certain securities, which may affect the position value applied in the collateral monitor:
· The collateral valuation of corporate notes or bonds rated B1 to B3 will be adjusted from 50% to 70%.
· Any ETF or other investment vehicle that includes Bitcoin or any other cryptocurrency as underlying collateral will have no collateral value and will therefore be subject to a 100% valuation discount.
