Genesis Global Trading, an OTC digital currency trading firm, has reportedly issued $553 million in cryptocurrency loans to hedge funds and other institutional investors in the last six months through its affiliate, Genesis Global Capital.
— Genesis Capital (@Gen_Capital) October 18, 2018
According to the report, Genesis Capital began issuing crypto loans in March and currently has $130M in active loans outstanding.
Genesis originally launched its loan product with Bitcoin (BTC), Ethereum (ETH), and Monero (XMR) offerings. However, the firm notes that investor interest in ETH has since dropped-off do to falling coin prices. As a result, Genesis decided to add XRP, Litecoin (LTC), and Ethereum Classic (ETC).
“Some of our largest single originations to date were ETH loans in March and May to hedge funds. Over the second half of the year, these hedge funds began covering positions as they realized profits and the short interest in ETH was replaced by other alternative assets,” states Genesis in the report.
Genesis Capital is currently serving more than 60 institutional clients from around the world. These clients are leveraging the borrowed capital to hedge investments and as a source of working capital to scale their businesses.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.