The blockfi crypto lending service has acquired a significant stake in the Grayscale bitcoin trust (GBTC), writes The Block.
BlockFi owns 5.07% of GBTC assets, according to reports for the US securities and exchange Commission (SEC). The regulator requires companies to report any shares over 5% in third-party businesses. BlockFi filed a report on October 26, reflecting the purchase of 24,235,578 GBTC shares on October 15. This corresponds to 24,235 BTC or $328 million.
BlockFi CEO Zach Prince said that the purchase was made in order to serve the interests of their own customers as a crypto lending service. "There are credit markets associated with this product. Our substantial involvement allows us to deliver additional value to customers and the market for GBTC's liquid and illiquid shares, " he said.
Currently, GBTC volume exceeds 467,000 BTC or $6 billion. The tool allows investors to access the market of the first cryptocurrency without having to hold it directly. Three Arrows Capital also acquired 6.26% of the trust's shares and invested $259 million in it by June.
Earlier, Grayscale released results for the third quarter of 2020, which became a record with the volume of attracted assets above $1 billion.