The company cited the reason behind the higher interest rate on larger BTC deposits because lending and borrowing markets for the world’s biggest cryptocurrency by market capitalization”have developed into a vibrant and developing field.”

Some BTC accounts, on the other hand, will observe a slight interest rate increase — around 2.15 percent in the current 2 percent — for deposits of over 25 BTC. Those holding 0.5–25 BTC will last to earn 6.2 per cent APY, BlockFi said.

BIA crypto holdings are custodied and offers insurance policy for the resources it holds in custody.
The business launched that the BIA in March, providing an yearly interest rate of 6 per cent, paid on a monthly basis from cryptocurrency. That monthly interest is then compounded to produce a 6.2 percentage APY.
On the contrary, the ether lending marketplace is now”stagnant” over the last couple quarters, BlockFi said. The company’s terms and conditions say that it can alter interest rates at its discretion.

Cryptocurrency lending startup BlockFi is almost halving the interest rates it offers on ether (ETH) deposits, though others bitcoin (BTC) prices will increase marginally.

In Tuesday’s upgrade, BlockFi further updated that the BIA currently has over $100 million in funds under management — almost double the $53 million it had as of last month.

BlockFi picture via CoinDesk archives

By June 1, customers with 25–100 ETH accounts in a BlockFi Interest Account (BIA) will observe the interest rate drop from the current 6.2 percent annual percentage yield (APY) to 3.25 percent, the startup announced Tuesday. Those holding 100 ETH accounts will earn just 0.2 per cent APY.

Notable investors such as Anthony Pompliano’s Morgan Creek Digital along with Mike Novogratz’s Galaxy Digital Ventures back blockFi. The company raised $4 million last December, also formerly raised $52.5 million last July.