Some of the earliest adopters became more willing to take profits as bitcoin reached record prices, having watched gains disappear in previous downturns, Rocca said. Others, including investors who entered around 2018 and 2019, remain determined to hold and prefer borrowing against their coins when they need liquidity.
For the profit-takers, selling does not necessarily mean abandoning bitcoin. Some keep the proceeds in dollar savings accounts and receive interest in $BTC, gradually rebuilding their cryptocurrency holdings while retaining cash.
Rocca said about 45% of Xapo customers use that feature.
Xapo currently advertises a variable base rate of 4.1% on dollar savings, paid in bitcoin, alongside a temporary 4.6% introductory rate for eligible new members. It’s a separate bitcoin credit fund that targets annual returns of up to 4% through lending, exposing investors to credit and counterparty risk.
The common thread is the demand to make existing wealth productive.
“The theme of this cycle is yield, accumulation, income generation,” Rocca said.
Borrowing allows customers to retain exposure to future bitcoin gains, although they also remain exposed to price declines while taking on debt.
Banks see demand, but move slowly
Traditional banks increasingly acknowledge that clients want bitcoin exposure, Rocca said. Their interest in custody and investment products represents a substantial change from the skepticism he encountered when he began working in crypto in 2016.
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