As a researcher with experience in the crypto market and its related financial instruments, I cannot help but feel a sense of unease as concerns over the Bitcoin Exchange-Traded Funds (ETFs) continue to mount following recent developments. The DTCC’s announcement regarding collateral values for ETFs containing Bitcoin or other cryptocurrencies has sent shockwaves through the digital asset market, causing ripples in the broader crypto market selloff.
As a crypto investor, I’ve noticed the unease in the market as Bitcoin and other cryptocurrencies experience a selloff. The uncertainty surrounding the Bitcoin Exchange-Traded Fund (ETF) has grown more pronounced after a report suggested a potential new downtrend for this investment vehicle. It’s important to note that recent news from the Depository Trust Company (DTCC) about collateral values for ETFs holding BTC or other cryptos has added fuel to these investor concerns.
DTCC Announcement Rattles Bitcoin ETF Investors
Recently, there have been dramatic shifts in the investment trends of U.S.-listed Spot Bitcoin Exchange-Traded Funds (ETFs). This is evident from the substantial withdrawals observed over the past week. Consequently, some investors are expressing worries about decreasing institutional enthusiasm towards Bitcoin from the financial sector. Moreover, this development appears to have played a role in the recent crypto market downturn.
As an analyst, I’ve been closely monitoring the Bitcoin Exchange-Traded Fund (ETF) landscape, and a new report from 10X Research has added an element of uncertainty to the situation. The Decentralized Trust Company (DTCC) announced that it will impose a 100% haircut on ETFs with cryptocurrency exposure starting April 30. This decision has sparked discussions about a potential reversal in Bitcoin ETF investments, especially given the increased market volatility and substantial outflow from U.S. Spot BTC ETFs.
Significantly, the DTCC’s choice to deny collateral value to Bitcoin ETFs has caused ripples in the cryptocurrency market. With Bitcoin reaching lower peak prices, 10X Research foresees a potential new downtrend for the Bitcoin ETF. Given this prediction, it appears that investors are growing increasingly anxious about the DTCC’s stance on Bitcoin ETFs and their potential consequences.
DTCC’s Announcement Comes Amid Notable Outflux
The announcement from DTCC has caused ripples of surprise in the financial world, most notably affecting Bitcoin and cryptocurrency-based ETFs. Starting right away, DTCC will no longer provide collateral to these ETFs, creating major hurdles for investors.
prior to the commencement of modifications to collateral values in the Collateral Monitor beginning April 30, 2024, which will impact certain securities, DTCC has announced a significant change. This development means that Exchange-Traded Funds (ETFs) containing cryptocurrency exposure will undergo a complete write-down or “haircut” of 100%. This news has sparked debate about the sustainability of these ETFs and potential market consequences.
Additionally, the announcement was made as significant withdrawals from U.S.-listed Bitcoin ETFs amounting to $328 million this week were reported. To put it into perspective, the past three days saw a total withdrawal of approximately $421.8 million from these Bitcoin ETFs.
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- BICO PREDICTION. BICO cryptocurrency
- VANRY PREDICTION. VANRY cryptocurrency
- USD ZAR PREDICTION
- USD COP PREDICTION
- USD CLP PREDICTION
- USD PHP PREDICTION
- G PREDICTION. G cryptocurrency
2024-04-27 15:05