10x Research: DTCC's increase in margin requirements for cryptocurrency ETFs may lead to a reversal of inflows into Bitcoin ETFs

2024-04-27 17:52:41

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ChainCatcher news, cryptocurrency research firm 10x Research analyzes that the Depository Trust & Clearing Corporation (DTCC) recently announced that starting from April 30, it will no longer provide any collateral value for ETFs or other investment instruments that include Bitcoin or other cryptocurrencies as underlying investment assets. Related assets will be considered 100% written down, meaning that market makers will need to provide more margin.

10x Research points out that the price of Bitcoin is making lower highs, and a new downtrend seems to be forming. In this context, the DTCC's statement could have significant implications. On April 4, 10x Research analyzed a "self-reinforcing Bitcoin mechanism" framework, suggesting that there is a risk of ETF fund inflows reversing to some extent.

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