Borrowing Against Bitcoin Feels More Natural Than Ever

While market volatility once kept investors from leveraging their BTC, attitudes are now shifting. “Three or four years ago, this kind of confidence didn’t exist,” Rocca noted. “But today, sharp price crashes seem less likely, and people are more at ease using Bitcoin as collateral.”

On March 18, 2025, Xapo Bank introduced a new product enabling users to borrow US dollars without selling their BTC. With this service, eligible clients can access up to $1 million in funding while maintaining full exposure to their Bitcoin.

Institutional Confidence and the ETF Influence

Rocca attributes the surge in interest to stronger long-term expectations for crypto and a noticeable rise in institutional involvement. “With ETFs entering the picture, sentiment around Bitcoin has shifted from short-term speculation to long-term vision,” he said.

This changing perception is unlocking new demand for BTC-backed borrowing solutions. Xapo offers flexible loan-to-value (LTV) ratios of 20%, 30%, and 40%, allowing users to manage their risk levels. “If someone holds 100 BTC, even a conservative 20% LTV allows them to borrow millions without liquidating,” Rocca explained.

He also emphasized that liquidation risk remains low, noting, “Bitcoin would need to fall below $40,000 for liquidation to occur — and we’re far from that level.”

Access Liquidity Without Selling

Rocca highlighted that crypto-backed lending offers a practical solution for dealing with unexpected expenses. “Whether it’s a medical bill or a car replacement, you don’t have to sell your Bitcoin. You can just borrow against it and cover the cost by paying interest,” he said.

This method allows investors to retain the upside potential of Bitcoin while gaining access to the liquidity needed for real-life situations.

A New Era in Bitcoin Ownership

Rocca believes we’re witnessing a shift in Bitcoin use — from a passive “hodl” mindset to an era where BTC becomes an active financial tool. In today’s environment of increasing institutional adoption, Bitcoin is evolving into more than just a store of value.

With this change, Bitcoin is cementing its place as a maturing asset class — one that can be utilized without being sold, reflecting both the evolution of investor behavior and the market itself.

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