The crypto firm BlockFi took the U-turn from its words after commenting on Tuesday that it would not accept shares in the Grayscale Bitcoin Trust (GBTC) as collateral for loans.
A day after this statement, today the firm issued another statement: “We are not saying that we won’t support GBTC as collateral moving forward.”
BlockFi spokesperson says that they are currently not holding any position in GBTC and are closing the settlement of GBTC collateral-backed loans, but that doesn’t mean that the firm won’t support GBTC as collateral moving forward.
He added, “ Like any collateral, we constantly evaluate appropriate collateral haircut ratios and aim to accept as many types of collateral that our client’s hold as possible.”
As per the early statement, BlockFi has confirmed that it has unwound its position in GBTC.
While the aftershocks of the Three Arrow Capital crisis were taking down rivalry platforms one by one, BlockFi has found a savior in form of the crypto exchange FTX, which helped it to continue its platform to continue with any pause on withdrawal.
While BlockFi was claiming its limited exposure to Three Arrow Capital, it was significantly exposed to the Grayscale Bitcoin Investment Trust (GBTC).
On Monday, BlockFi CEO Zac Prince responded to the claim of CoinShares’ Meltem Demirors, who said that BlockFi is still holding up a ton of GBTC. Zac stated that his company “directly holds zero GBTC.”
“We have a couple small loans (like sub $10M) w/ GBTC as collateral that are in the process of winding down,” he said.
