BlockFi Stops Accepting GBTC Shares as Collateral on Loans (1)

BlockFi Inc. unwound its positions in the Grayscale Bitcoin Trust and stopped accepting shares of the investment fund as collateral, according to a person with knowledge of the matter. The crypto lender will evaluate the use of Grayscale as collateral in the future.

The move shows how the collapse and subsequent liquidation of crypto hedge fund Three Arrows Capital continues to send shock waves throughout the industry.

BlockFi doesn’t hold any positions in GBTC and is winding down “a couple” of loans where GBTC makes up some of the collateral, the Jersey City, New Jersey-based lender said in a statement ...