Cryptocurrency
Cryptocurrency Diehards Turn to Interest Bearing Accounts via @crypto
As reported by Bloomberg Crypto, “Retail investors are lining up for the latest twist in the never-ending crypto craze. “BlockFi, a fintech startup backed by billionaire Mike Novogratz’s Galaxy Capital, began providing interest-bearing accounts this month that offer up to 6.2 percent in annualized returns paid in Bitcoin or Ether. Since a March 5 launch, […]
As reported by Bloomberg Crypto, “Retail investors are lining up for the latest twist in the never-ending crypto craze.
“BlockFi, a fintech startup backed by billionaire Mike Novogratz’s Galaxy Capital, began providing interest-bearing accounts this month that offer up to 6.2 percent in annualized returns paid in Bitcoin or Ether. Since a March 5 launch, they’ve attracted at least 10,000 customers, 90 percent of whom are retail investors. The company has taken in over $35 million in deposits, with large accounts pulling the average balance up to about $40,000.
“BlockFi’s interest rate is set on a month-to-month basis and is based on a combination of rates BlockFi sees in the institutional cryptocurrency borrowing market, as well as a budget it set for customer acquisitions, Zac Prince, chief executive of New York-based BlockFi, said in an interview.
“’We expect the interest rate in the account to be higher in times when prices are falling, and lower when prices are rising because demand to borrow Bitcoin is partially driven by market sentiment,’ said Prince. ‘We are bullish on the cryptocurrency market and on Bitcoin long term,’ he said, which would ultimately result in lower interest rates.”