Skip to content
ORFN

ORFN

Constrained Capital ESG Orphans ETF

Best Crypto Loan Providers: Top Picks for 2024

Introduction

The market of lending services for cryptocurrency has developed rapidly and provides investors with numerous opportunities to use their funds. With the advancement into the year 2024, several platforms have stood out as the best platforms to offer crypto loans. In this article, we share the list of top 5  best crypto loan providers for 2024 based on their main characteristics, advantages, and unique selling propositions. 

  1. BlockFi 

BlockFi has been one of the best platforms for obtaining cryptocurrency loans due to the simple interface, reasonable interest, and a solid reputation.  

Key Features 

  1. Competitive Interest Rates: 

Interest rates that BlockFi provides are among the lowest in the market meaning that borrowers will find the platform very useful. 

  1. High Loan-to-Value (LTV) Ratio: 

The LTV ratios can go up to 50% which means that users can get a large amount of money compared to the pledged asset. 

  1. Diverse Loan Options: 

BlockFi accepts a number of cryptocurrencies as collateral with the primary ones being Bitcoin, Ethereum, Litecoin and many others. 

  1. No Hidden Fees: 

Uncomplicated fees with no concealed expenses always increase trust and dependability.  

 Pros 

  • Low interest rates 
  • Flexible loan terms 
  • Robust security measures 

 Cons 

  • Restricted to central place credit 
  • Need to go through the identification verification process also known as the KYC (Know Your Customer) process. 
  1. Celsius Network 

Celsius Network is special for its focus on community and relatively high interest rates on the loans and deposits. 

Key Features 

  1. Flexible Loan Terms: 

Celsius provides loan terms from 6 months up to 3 years in order to suit the needs of the borrowers. 

  1. No Minimum Loan Amount: 

It is important to note that borrowers can borrow any amount they want. It means that both the small and large investors can apply for loans. 

  1. Competitive Interest Rates: 

Celsius also has reasonable interest rates and from time to time it has special offers on the interest rates that are charged. 

Pros  

  • High interest rates on deposits 
  • The loan amount and the repayment period are not restricted to specific limits and conditions. 
  • Strong community engagement 

 Cons  

  • Centralized platform 
  • Restricted number of cryptocurrencies 
  1. Aave 

Aave is a DeFi protocol that introduced several unique ideas and currently offers one of the largest lists of available assets. 

Key Features

  1. Decentralized Lending: 

Aave operates on the Ethereum blockchain, offering decentralized lending with no need for intermediaries.

  1. Diverse Collateral Options: 

Supports a wide array of cryptocurrencies and stablecoins as collateral.

  1. Flash Loans: 

Unique to Aave, flash loans allow borrowing without collateral, provided the loan is repaid within the same transaction.

Pros

  • Complete decentralization
  • Wide range of supported assets
  • Innovative lending features

Cons

  • Requires understanding of DeFi and smart contracts
  • Potential smart contract risks
  1. Compound

Compound is also another popular DeFi protocol that has received a lot of limelight for its transparent lending and borrowing platform.

Key Features

  1. Algorithmic Interest Rates: 

On Compound, interest rates are not set by humans but are computed automatically depending on the supply and demand.

  1. Tokenized Collateral: 

They use cTokens to represent the collateral so that it is easily understandable and can be managed efficiently.

  1. Wide Asset Support: 

Accepts many cryptos such as popular stablecoins DAI and USDC.

Pros

  • Decentralized and transparent
  • Dynamic interest rates
  • Broad asset support

Cons

  • Need technical skills to work
  • Smart contract risks
  1. YouHodler

YouHodler has many unique features which attract a lot of users, as well as high LTV ratios, so many people interested in cryptocurrencies use it.

Key Features

  1. High LTV Ratios: 

LTV ratios of up to 90% are offered thus allowing the users to get the most out of it.

  1. Multi HODL Feature: 

Enables users to leverage their digital currencies by using other people’s money to invest, which is a combination of lending and margin trading.

  1. Wide Range of Supported Cryptos: 

Accepts various cryptocurrencies like the popular ones and the less popular altcoins.

Pros

  • High LTV ratios
  • Add-ons such as Multi HODL
  • Extensive cryptocurrency support

Cons

  • Higher interest rates than some of the competing banks.
  • Centralized platform

Conclusion

In the context of 2024, there are many providers of crypto loans, and each of them has its advantages and is suitable for a particular type of client. The best crypto loan providers range from decentralized platforms such as Aave and Compound to centralized and easy-to-use platforms like BlockFi and Nexo. Like in any other financial decision, one must always do their homework and understand the risks involved in lending out your cryptocurrencies. Cryptocurrency loans can be used efficiently if you have the right platform to provide you with such a service.

Constrained Capital LLC
Constrained Capital LLC

© 2024 Constrained Capital LLC

Important Information

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. To view this and other information about the Fund, click to read the prospectus or the summary prospectus. Read the prospectus or summary prospectus carefully before investing.


Investing in ETFs involves risk and there is no guarantee of principal.

Because the Fund is an ETF (rather than a mutual fund), shares are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemable. Owners of shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Unit aggregations only. Brokerage commissions will reduce returns.

Diversification in an individual’s investment portfolio does not assure a profit.

American Depositary Receipt Risk (ADR). ADRs involve risks like those associated with investments in foreign securities, including changes in political or economic conditions of other countries and changes in the exchange rates of foreign currencies. ADRs listed on U.S. exchanges are issued by banks or trust companies and entitle the holder to all dividends and capital gains paid out on the underlying foreign shares. Investing in ADRs as a substitute for an investment directly in the foreign company shares, exposes the Fund to the risk that the ADRs may not provide a return that corresponds precisely with that of the foreign company’s shares. Concentration Risk. Because the Fund’s investments will be concentrated in a group of industries, to the extent the Index is concentrated, the value of its shares may rise and fall more than the value of shares in a fund invested in a broader range of industries. ESG Orphan Risk. A strategy or emphasis on environmental, social and governance factors (“ESG”) orphaned industries, such as fossil fuel energy, nuclear power, tobacco, weapons/firearms, alcohol and/or gambling, may limit the investment opportunities available to a portfolio. Therefore, the portfolio may underperform or perform differently than other portfolios that do not have an ESG Orphaned industry focus or limitation. New Fund Risk. The Fund is recently organized with no operating history and managed by an Adviser that has not previously managed a registered fund. As such, the Fund has no track record on which to base investment decisions. Non-Diversification Risk. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in securities of a single issuer or fewer issuers than a diversified fund, which may expose the Fund to the risks associated with the developments affecting the issuers in which the Fund invests. Passive Management Risk. The Fund is passively managed and attempts to mirror the composition and performance of the ESG Orphans Index. The Fund’s returns may not match due to expenses incurred by the Fund or lack of precise correlation with the index.

The Solactive Capital ESG Orphans Index is a representation of companies that have business operations in one of the following industries: alcohol, fossil fuel energy, gaming, nuclear power, tobacco and weapons/firearms. The Index is calculated, administered, and published by Solactive AG, the Index’s administrator.

Constrained Capital, LLC is the owner of the ESG Orphans Index and the sponsor of the Fund.

Toroso Investments, LLC (Toroso) serves as investment adviser to the Fund.

Tidal ETF Services, LLC, a subsidiary of Toroso, serves as the Fund’s launch and structure partner.

The fund is distributed by Foreside Fund Services, LLC