The launch of the BlockFi Interest Account (BIA) was a huge success. We received overwhelming support from the community and new clients joining the platform. Our team strives to provide the best consumer-friendly financial products in the crypto ecosystem and we’re seeing that take shape through the significant volume we’ve seen in just the first two weeks of the BIA.
The BIA private beta, which launched in January, brought in about $10 million in client assets. Since our public launch on March 5, BIA has grown by over 400% and counting. A key insight we gained is that approximately 75% of BIA clients have a balance of less than 5 BTC or 150 ETH. In fact, our median account balance is $7,000 USD. This is a testament to the market demand for simple and easy to use consumer-focused products in the crypto ecosystem. We are so grateful for our early adopters’ support and look forward to giving even more investors a chance to earn a yield on their crypto.
We also saw unanticipated demand from businesses like crypto hedge funds and VC firms. We found that these firms open large accounts on our platform as a way to bolster their returns. From the start, BIA was meant to be a consumer-focused product. While we greatly appreciate the widespread adoption of BlockFi’s products, our mission is to provide the average crypto investor with the tools to build their wealth and invite new participants into the ecosystem.
As a result, starting April 1st, only BIA balances of up to and including 25 BTC or 500 ETH (equivalent to roughly $100,000 and $70,000 respectively) will earn the 6.2% APY interest rate. All balances over that limit will earn a tiered rate of 2% interest. To clarify, if you had 25.5 BTC in your BIA account, the first 25 BTC would earn interest at 6.2% and the remaining 0.5 will earn interest at 2%. Additionally, on April 5th, we will be adding a flat withdrawal fee of 0.0025 BTC and 0.0015 ETH. All withdrawals submitted before then will remain free. These small adjustments are necessary to ensure that BIA can support as many clients as possible while maintaining the high quality services we provide to the average crypto consumer. We anticipate that our minimum interest-earning deposit amount will drop in the coming months.
– The BlockFi Team
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