The Crypto Times
Image default
Bitcoin Blockchain Ethereum News

A Great Buzz Around Interest-Bearing Custodial Crypto Accounts

According to information from Bloomberg, Ethereum and Bitcoin investors are transferring millions of dollars of their crypto assets to interest-bearing accounts to earn a return in crypto with minimal risk. Traders of cryptocurrency have moved an estimated $35 million in ETH and BTC to these accounts with custodial corporations such as New York-based BlockFi.

Account Caps

However, in order to prevent crypto whales from taking advantage of the interest-bearing feature of their accounts, BlockFi plans to introduce account caps of 25 BTC and 500 ETH by the beginning of next month.

BlockFi CEO, Zac Prince

According to BlockFi CEO Zac Prince, the company is expecting higher interest rates when prices are falling and lower interest rates when prices are increasing. Prince said that Block Fi is expecting cryptocurrency to be bullish for the long term despite the recent bearish downtrends.

BlockFi Wants Retail Investors, Not Whales

BlockFi emphasized that the accounts for the company are only for retail investors – not crypto whales. BlockFi itself has specified that beginning the 1st of April, only the BIA, or the BlockFi Interest Account that reaches 25 BTC or 500 ETH will earn a 6.2% annual rate. Those over the limit will make an additional 2% interest depending on tiers. Every 0.5 BTC or ETH is expected to earn an interest of 2% as the account increases in size.

Related posts

US Securities Commission Gives Bitwise Bitcoin ETF Proposal Another Chance

Viena Abdon

São Paulo’s Municipal Government Set to Use Blockchain Registry for Public Work Projects

Viena Abdon

BlockShow Spearheads Fundraising Event to Help Rebuild Notre Dame

Viena Abdon

Binance Procures Crypto-Asset Trading Platform JEX, Promises More Utility for Token

Viena Abdon

Israel’s Bitcoin Association Petitions for Full Disclosure of Bank Policies on Cryptocurrency

Viena Abdon

Mt. Gox Opens Rehabilitation Filing System to Corporate Clients

Alejandro Rioja