BlockFi will no longer accept Grayscale bitcoin fund shares
— Bitcoin, Collateral, Gbtc, Arrows, Shares, Statement, Accept, Grayscale, Reported, Longer — 1 min read
BlockFi will no longer accept shares of Grayscale’s bitcoin fund as collateral. The move appears to be a reaction to the controversy surrounding Three Arrows Capital, which reportedly had a huge stake in GBTC and was exploring arbitrage opportunities around the fund. BlockFi did not rule out allowing customers to use GBTC as collateral in the future. The decision is another sign of the crypto market's turmoil, which has seen several major companies close out of business due to the market's recent turmoil. The company recently sued the SEC after the regulator rejected its proposal to convert the fund into a spot bitcoin ETF. The SEC cited the possibility of manipulation of bitcoin trades as a reason for rejecting the application. The case was first reported by The Block Source