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.
BlockFi said it wants to stay true to its “consumer-focused” market: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.
Starting April 1, 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 rate.Albert Einstein called compound interest the “eighth wonder of the world.” Learn how BlockFi is unlocking this financial tool for crypto investors. https://t.co/QzW2GpARN4 pic.twitter.com/wLaghL6Kvf — BlockFi (@TheRealBlockFi) March 11, 2019
Balances above that limit will earn a tiered rate of 2% interest.Still profitable
So, for example, if you have 25.5 BTC in your BIA account you will ...