Genesis Lends $425 Million Of Crypto In Q1
Genesis Global Trading, a company that provides OTC digital trading for high net worth individuals and institutions has apparently grown in size and diversified past short sellers.
The announcement on Thursday came as global capital wrote $425 million of cryptocurrency loans in its first quarter alone. This bought its total amount of cash in the business since it launched in March to over $1.53 billion.
Additionally, Genesis’s portfolio of loans also grew. The portfolio climbed 17% from the end of 2018 to $181 million as of March 30th. Each loan is paid off on an average timescale of six weeks, which apparently explains why the amount outstanding at the end of the period of smaller than the volume produced by the first.
Details of Genesis’s loan book were also provided. The loan book was made up of mostly bitcoin at 68 percent, XRP at 6.7 percent and others at 3.6 percent each. The smaller coins were ethereum, litecoin, and others.
Most notably, however, short sellers now only account for a fraction of Genesis’s bitcoin loans, which is down from approximately half of that in 2018 in a statement provided by news outlet CoinDesk.
The ability for someone to short, or determine that the price would fall by selling borrowed coins “was a missing piece for a long time, something that exists in any other established world. You can short gold, stocks, why can’t you short cryptocurrency?” Moro explained.
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