Bitcoin Holders Borrow Against Assets Rather Than Sell

A growing number of Bitcoin holders are turning to collateralized lending as an alternative to selling their assets, according to research by Ledn. The survey found that over 88% of crypto holders in the U.S. and Australia would consider borrowing against their digital assets, but only 14% currently do.

One reason for this disparity is a lack of trust among non-borrowers. When asked what was holding them back, the top concerns were managing Bitcoin's price volatility, liquidation risk, and regulatory uncertainty around crypto-backed loans. These issues ranked above not having enough crypto or the rates and features offered by lenders.

According to Mauricio Di Bartolomeo, co-founder of Ledn, 'Bitcoin is now held by tens of millions of people, managed by regulated institutions, and covered by major ratings agencies, yet collateralised borrowing against it is still in very early innings compared to any traditional asset class of this size.'

The borrowers surveyed were not accessing emergency cash but rather using loans as a way to unlock funds without giving up their assets. In fact, 62% of current crypto-loan users are buying more Bitcoin and just 1% are selling.