Bitcoin ETFs, Bankruptcy Paybacks Have Given Crypto Lending a Second Wind

Bitcoin ETFs and the repayment of funds from bankrupt companies have breathed new life into the crypto lending sector, according to Mauricio Di Bartolomeo, co-founder of Ledn. The sector experienced a dramatic decline during the crypto winter, with firms like Celsius, BlockFi, and Genesis filing for bankruptcy. However, the market has rebounded as crypto prices have soared, with the CoinDesk 20 Index up over 200% since the end of 2022. Ledn, which survived the crypto winter by focusing on stability and security, has seen a surge in demand, processing over $690 million in loans in the first quarter of 2024. Institutional clients have accounted for the majority of the loans, and the approval of bitcoin ETFs has contributed to the increased interest in crypto lending. Additionally, the return of funds from bankrupt companies has further fueled the market’s recovery, as users reinvest their assets. Overall, the resurgence of the crypto lending sector is a testament to the enduring appeal of bitcoin and the growing acceptance of cryptocurrencies in the financial industry.