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Crypto brokerage Genesis reports decline in lending in Q1 as market slump continues
Genesis reported $44.3 billion in loans in the first three months of 2022 Institutional investors are becoming less interested in Bitcoin, the report says Genesis, the cryptocurrency brokerage firm for institutional investors, reported $44.3 billion in the first quarter. The decline is due to a major sell-off across crypto assets, Genesis wrote in a first-quarter earnings report Friday. Valuations across the sector are almost half what they were in November, the report added. Genesis' lending business focuses on lending to crypto funds and other institutions to hedge investments or short sales of digital assets. …
Crypto brokerage Genesis reports decline in lending in Q1 as market slump continues
- Genesis meldete in den ersten drei Monaten des Jahres 2022 Kredite in Höhe von 44,3 Milliarden US-Dollar
- Institutionelle Anleger interessieren sich immer weniger für Bitcoin, heißt es in dem Bericht
Genesis, the cryptocurrency brokerage firm for institutional investors, reported $44.3 billion in the first quarter.
The decline is due to a major sell-off across crypto assets, Genesis wrote in a first quarter Results report Friday. Valuations across the sector are almost half what they were in November, the report added.
Genesis' lending business focuses on lending to crypto funds and other institutions to hedge investments or short sales of digital assets. The brokerage firm has originated $195 billion in loans since the lending platform launched in 2018.
Despite recent volatility, new institutions entering the market have shown strong demand for cash advances over the past quarter, Genesis said.
“Institutions are evolving their crypto strategies and strengthening their understanding of this industry, even amid the market uncertainty that marked the start of this year,” CEO Michael Moro said in a statement. “As we continue to deepen our collaboration with our clients across Genesis’ broad product range, we are committed to further expanding our market share and providing innovative strategies for clients to access this growing asset class.”
Genesis' trading desk grew in the first quarter of the year. Notional traded derivatives volume – including negotiated block and exchange-traded futures – reached $27.8 billion in the quarter, up 33% from the fourth quarter of 2021.
Investors are becoming less interested in single-asset portfolios, especially when it comes to Bitcoin, Genesis said in the report.
“Since the middle of last year, we have noticed a macro trend where BTC has gradually become a smaller proportion of our portfolio mix,” the report said. “Many customers are also focused on [decentralized finance] financing options on these native Layer 1 blockchains, which sometimes offer more attractive prices than on typical ETH blockchain protocols.”
One possible explanation: There is little opportunity for Bitcoin Cash and Carry basis trades as the three-month trailing and three-month basis were compressed in the first quarter, the report said. The same trend can be seen in Ethereum base trading, which used to trade at a slight premium to Bitcoin.
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The post “Crypto Brokerage Genesis Reports Q1 Lending Decline as Market Slump Continues” is not financial advice.