Institutional cryptocurrency OTC [over-the-counter] broker Genesis Trading disclosed its loans processed over half a billion USD in its initial six months in a recent official report. Genesis, that began its digital asset loaning activities earlier in March, disclosed its current order book consists of $130 Mln in outstanding loans, a figure that has “steadily grown” since beginning, the company added.
Total cash flow reached $553 million for all supported assets. While adding further the corporate sumarized its motivation mentioning:
Over the past year, through consumer feedback and therefore along with the rise of derivative marketplaces, we saw a hike within the range of market participants eager to borrow or lend their digital assets.
Trends over its primary half of a year’s commerce comprises a discount in Ethereum [ETH] loans along with the rise in the stardum of loans in alternative altcoin assets in Q3, with Bitcoin [BTC] staying “consistent” throughout.
“Specifically, [Litecoin [LTC], Ripple [XRP], Ethereum Classic [ETC] and Bitcoin CASH [BCH] all drew higher demand during the period, the offer strained, driving rates on most various assets higher,” the report continues.
The type of consumer using the platform has conjointly modified over time, with hedge funds dominating at the beginning but however since giving way to commerce and arbitrage corporations.
“These corporations usually borrow digital assets to trade against derivatives like futures and swaps,” Genesis while explaining further concluded:
“We believe this sort of activity can still continue to grow as derivative markets matures.”
However, Q4 2018 is all set to see the market debut of a minimum of one major institutional investment solution for the digital currencies, possibly intercontinental Exchange’s “regulated ecosystem” Bakkt, that can initially offer physical Bitcoin futures.