Crypto OTC Broker Genesis Processes $553 Million in Institutional Lending in Six Months
Over Half a Billion Dollars Processed Through Genesis Global Trading Loan Spin-off Within First Six Months
A new report on October 18th revealed that Genesis Global Trading has been experiencing a substantial amount of success this year. Within the first six months of starting their loans spinoff project, they managed to process over $553 million.
The services began in March, and the company still has $130 pending in outstanding loans in the current order book. In a summary from the company, they said,
“Over the past year, through client feedback and the rise of derivative marketplaces, we saw a meaningful increase in the number of market participants wanting to borrow and/or lend digital currencies.”
With the trends since the creation of the spin-off project, there have been some loans seeing more action than others. Ethereum has seen a significant reduction in loans, with the popularity shifting instead to other altcoin assets in the third quarter. However, Bitcoin has managed to keep a “consistent” performance throughout. The report added,
“Specifically, [Litecoin, Ripple, Ethereum Classic] and Bitcoin Cash (BCH) all drew higher demand while supply constrained, driving rates on most alternative assets higher.”
The trends in the types of loans aren’t the only changing factors here. The clients that end up using the platform are evolving as well. Though hedge funds were originally the dominating force, trading and arbitrage firms have brought in their own business more and more lately. Genesis commented,
“These firms generally borrow digital assets to trade against derivatives like futures and swaps. We believe this kind of activity will continue to pick up as derivative markets mature.”
The fourth quarter of the year could bring in at least one major institutional investment opportunity for the public. The Bakkt ecosystem from Intercontinental Exchange is one of the more realistic possibilities, considering their promise to provide physical Bitcoin futures.