Ga naar de inhoud

Blockchain News Feed

All the latest news on Blockchain & Cryptocurrencies

Menu
  • Home
  • News
  • Exchanges
  • Market Analysis
  • YouTube
  • Brave Browser
Menu

Genesis Global Lends $553 Million In Crypto Assets, Institutional Space Booming

Geplaatst op oktober 19, 2018 door Blockchain News

Even in the thick of 2018’s crypto bear market, a related subsector has seen an unprecedented boom, with institutions throwing millions of dollars at a well-recognized over-the-counter (OTC) player in the cryptocurrency market.

Institutions Borrow $553 Million In Crypto In 6 Months

Per a brief report from New York-based Genesis Global Capital, titled “2018 Q3 Digital Asset Lending Snapshot,” at the start of March 2018, the firm launched the crypto industry’s first-ever institutional lending business to go hand-in-hand with Genesis’ already-established OTC desk.

Although the venture was nothing more than an experimental stab at a potentially revolutionary service, in the same report, the American company revealed that its clients quickly gained interest in crypto asset loans. Elaborating, Genesis Capital wrote:

“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. We built this new business segment to meet those demands and have experienced an incredibly strong reception since our launch.”

This “incredibly strong reception” has seemingly taken the form of “60+ institutional counterparties,” who have requested for cryptocurrency loans across “nearly a dozen digital assets” in the past six months. According to statistics from the firm itself, these loans amounted to a monetary value of $553 million, a jaw-dropping sum to say the least.

The firm added that while many of its institutional debtors have already paid their loans in full, there is still $130 million worth of active loans, which is a figure that has only grown of the course of the lending service’s short, but fruitful lifetime. This indicates that the bears of today’s market haven’t deterred these investors one bit, contrary to popular belief.

Image Courtesy of Genesis Capital

In fact, as alluded to in the official report, 2018’s tumbling crypto prices may have only enticed Genesis Global’s clients, which primarily consist of hedge funds, trading funds, and crypto startups, to borrow digital assets to act as working capital.

Genesis pointed out that hedge funds “generally have thesis-driven views on assets,” so the arrival of its product, coupled with the bearish market trend, likely catalyzed traditionalist funds to borrow crypto assets to short the market in longer-term timeframes. On the other hand, the company added that trading firms, who have a comparable large penchant for risk, have sought to borrow digital assets on short-term bases to take advantage of arbitrage opportunities, which are present in emerging markets.

Last but not least, Genesis Capital brought attention to loans requested by fintech startups, which may actively use crypto assets “as a means of working capital to scale their businesses, such as remittance payments to customers.”

Regardless of how the borrowed funds are used, the bottom line is that institutions are still willing to throw copious amounts of free-flowing capital at this space.

Genesis Global Clients Bearish On Bitcoin, Not Ethereum

Following Genesis’ holistic highlight of its lending product, the startup went on to outline the exact specifics of the $553 million in loaned crypto assets. Although there were many statistics that caught the eyes of readers, a few points stood out to many astute traders.

Just weeks after the service’s March launch, the loan book primarily consisted of positions in Bitcoin and Ethereum, which could be attributed to the company’s claim that hedge funds were initially the only institutions to use the product. But, in the following months, in correlation with the sharp decline in the value of Ether, loan positions in Ripple’s XRP, Litecoin, and Ethereum Classic, began to take hold of Genesis’ balance sheet.

Now, only 4 percent of active loans pertain to Ether, while Bitcoin has seen 62.6% of active loans flood into its borders. According to Michael Moro, the chief executive at Genesis, a majority of loans have been requested by hedge funds, who have actively used these funds to actively hedge their positions on derivatives markets. This likely indicates that these institutions are more bearish on Bitcoin than they may be on Ethereum, which is a welcome sign for the latter crypto asset, which has been beaten and bruised to hell and back.

Featured Image From Shutterstock

The post Genesis Global Lends $553 Million In Crypto Assets, Institutional Space Booming appeared first on NewsBTC.


Source: News BTC
Original Post: Genesis Global Lends 3 Million In Crypto Assets, Institutional Space Booming

Ledger Nano X - The secure hardware wallet

Recente berichten

  • Czech central bank adds Coinbase to portfolio, boosts Palantir holdings
  • BlockFi bankruptcy administrator and DOJ agree to dismiss $35M lawsuit
  • Thou shalt not shill: Fake ‘Vatican Chamber’ token presale exposed
  • NFT sales hit $2.8B in first half of 2025 as trading volumes tank
  • South Korea plans to lift crypto venture business restrictions

Categorieën

  • Altcoin Buzz
  • Altcoin Buzz News
  • AMBcrypto
  • Bitcoin.com
  • Bitcoinist
  • BTC Manager
  • CCN
  • Coin Mastery
  • Coindesk
  • Coinpower News
  • Cointelegraph
  • CryproSlate
  • Crypto Daily
  • Crypto News (.net)
  • Cryptocoin News
  • Cryptocurrency News
  • CryptoDaily.co.uk
  • CryptoPotato
  • CryptosRUs
  • Daily HODL
  • DataDash
  • Ethereum Worldnews
  • Exchanges
  • ICO's
  • Invest in Blockchain
  • Market Analysis
  • News
  • News BTC
  • Newsbit
  • Portfolio
  • Pricecheck
  • Ready Set Crypto
  • The Modern Investor
  • ToshiTimes
  • Use The Bitcoin

Archieven

  • juli 2025
  • juni 2025
  • mei 2025
  • april 2025
  • maart 2025
  • februari 2025
  • januari 2025
  • december 2024
  • november 2024
  • oktober 2024
  • september 2024
  • augustus 2024
  • juli 2024
  • juni 2024
  • mei 2024
  • april 2024
  • maart 2024
  • februari 2024
  • januari 2024
  • december 2023
  • november 2023
  • oktober 2023
  • september 2023
  • augustus 2023
  • juli 2023
  • juni 2023
  • mei 2023
  • april 2023
  • maart 2023
  • februari 2023
  • januari 2023
  • december 2022
  • november 2022
  • oktober 2022
  • september 2022
  • augustus 2022
  • juli 2022
  • juni 2022
  • mei 2022
  • april 2022
  • maart 2022
  • februari 2022
  • januari 2022
  • december 2021
  • november 2021
  • oktober 2021
  • september 2021
  • augustus 2021
  • juli 2021
  • juni 2021
  • mei 2021
  • april 2021
  • maart 2021
  • februari 2021
  • januari 2021
  • december 2020
  • november 2020
  • oktober 2020
  • september 2020
  • augustus 2020
  • juli 2020
  • juni 2020
  • mei 2020
  • april 2020
  • maart 2020
  • februari 2020
  • januari 2020
  • december 2019
  • november 2019
  • oktober 2019
  • september 2019
  • augustus 2019
  • juli 2019
  • juni 2019
  • mei 2019
  • april 2019
  • maart 2019
  • februari 2019
  • januari 2019
  • december 2018
  • november 2018
  • oktober 2018
  • september 2018
  • augustus 2018
  • juli 2018
  • juni 2018
  • mei 2018
  • april 2018
  • maart 2018
  • februari 2018
  • januari 2018
  • december 2017
  • november 2017
  • oktober 2017
  • september 2017
  • maart 2017
  • juni 2016
  • juli 2014
  • september 2013
  • augustus 2013
©J Blockchain News Feed | Ontwerp: Krant WordPress thema