BlockFi, a major crypto lending firm based in New Jersey, has reversed its earlier decision, and now stop accepting shares in the Grayscale Bitcoin Trust (GBTC) as collateral for loans.
In a statement, a BlockFi representative said: "While we don't currently hold any positions in GBTC and are winding down a couple of loans where GBTC is part of the collateral package, we are not saying that we won't support GBTC as collateral moving forward. Like any collateral, we constantly evaluate appropriate collateral haircut ratios and aim to accept as many types of collateral that our clients hold as possible."
The earlier move by BlockFi to seek winding down its positions in Grayscale's Bitcoin Trust was because of its exposure to Singapore-based hedge fund firm Three Arrows Capital (3AC). BlockFi lost about $80 million from Three Arrows' bad debt in terms of the GBTC investment product whose value dropped massively amid the recent collapse of the struggling hedge fund.
GBTC allows...
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