May has been a fantastic month for the crypto ecosystem. We’ve seen the presumed end to the bear market. Bitcoin has had some very exciting upward price action. And thousands of serious crypto fans, traders, and entrepreneurs descended on NYC to attend the 2019 Blockchain Week. To top it off, the BlockFi Interest Account now has over $100 Million in assets under management since the launch of the product under two months ago*.
Last week we published a blog post on the market driving crypto lending. We believe that it’s important for crypto consumers to get familiar with how lending products work and what the markets are that facilitate the favorable rates companies like BlockFi offer to their clients. One of the key takeaways from that article was a high-level overview of the current market conditions for crypto lending and how the rates dictated by this market drive the ability for companies like BlockFi to provide a yield on crypto assets to their clients.
On one hand, the Bitcoin borrowing and lending markets have developed into a vibrant and growing field. On the other, the Ether lending market over the last couple quarters has become as stagnant as we’ve ever seen it. According to the Q1 report put out by Genesis Capital last month, just 3% of their overall loan portfolio is in ETH. Additionally, platforms like Poloniex and Compound are offering borrowing rates on ETH as low at 0.01%.
As a result, BlockFi will be making the following rate adjustments to BIA accounts as of June 1, 2019:
- BTC balances above 25 BTC will earn 2.15% interest (previously 2% interest rate). All balances between 0.5 BTC and 25 BTC will continue to earn 6.2% APY
- The rate for deposits of between 25 ETH and 100 ETH will change from 6.2% to 3.25% APY
- Balances above 100 ETH will earn 0.2% APY
We are also excited to announce some new updates to the BlockFi dashboard in the coming days. These include the ability to view the value of your BIA account balance in USD, the total amount of interest you’ve earned to date, calculators that forecast future potential interest earned on your BIA balance, and withdrawal submission in the BIA dashboard.
The BlockFi team is continually looking for ways to improve our platform. If you have any comments or suggestions about how we can improve the look and feel of BlockFi products, feel free to reach out to our team at email@example.com. We love hearing from you.
– The BlockFi Team
*All BIA balances are stored in a custodial account with Gemini.
Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are not subject to FDIC or SIPC protections.
Last updated on