BlockFi is raising interest rates on bitcoin and ether

Cryptocurrency lender BlockFi revealed it will raise interest rates on Bitcoin and Ether, effective April 1. Users will now be able to earn 6% on up to 5 BTC compared to the current 3.6%. Users will also be able to earn 4.5% on up to 500 ETH compared to the current 2-3.6%.

Why it matters:

• Bitcoin’s price has dropped more than 50% amidst the coronavirus selloff that began in February. According to the Block, BlockFi CEO Zac Prince, claimed that BlockFi was able to raise rates due to other lenders pulling back on lending activities and arbitrage coming out of the recent market volatility.
• Having just raised its $30 million Series B, BlockFi is among the best capitalized lenders in the industry. BlockFi is using its balance sheet strength to capitalize on the shifts in institutional lending markets brought about by the coronavirus turmoil, according to Prince.