Crypto Firm BlockFi Trims Interest Rates of Bitcoin Savings Accounts
BlockFi trims payouts for hedge funds and VCs provides a boost for “average crypto investors”.
The BlockFi Interest Account (BIA), which launched as a private beta in January, before rolling out to the public at the start of March, has so far been dubbed a “huge success” by the firm.
The BIA gives investors a return whether the crypto market is up or down, and is proving hugely popular with investors.
It has drawn in around $35 million in investments so far, and shows no sign of stopping, in a blog post BlockFi said:
Since our public launch on March 5, BIA has grown by over 400% and counting.
Now, BlockFi is adjusting its interest rates to favour retail investors – its core market – making sure they can still benefit from the firm’s 6.2% APY, while making payouts on larger deposits smaller.
Staying true
BlockFi says despite an “unanticipated demand” from crypto hedge funds and venture capitalist firms, 75% of BIA customers have a balance of less than 5 BTC or 150 ETH, and that the median account balance is around $7,000.
