An affiliate of Genesis Capital, Genesis Trading offers loans to the institutions so they can invest in bitcoin or other cryptocurrencies. Within the time span of about six months, Genesis Trading has managed to bestow loans of $553 million worth to different institutions. Genesis Trading claims that about 50 percent of the amount in the loans is dedicated to bitcoin only.
Lazar Jaric, a cryptocurrency analyst, writer and cloud mining expert, expressed his views about bitcoin and its future to BlockPublisher. Regarding the bitcoin holders and bitcoin market, he said:
So far, institutional investors are yet to gain a significant foothold in the bitcoin market.
After bitcoin, ether marks the next position by sharing 25 percent of the total amount in loans. Remaining 25 percent of the loans are said to be comprised of nine other cryptocurrencies that include bitcoin cash as well.
Genesis Trading revealed that bitcoin dominated its loan portfolio while ether saw a decline. Near the end of September, bitcoin’s share increased by 70 percent while ether marked about 3.7 percent of the loans. Moreover, bitcoin cash jumped from 1.9 percent to about 3.5 percent denomination in the loans.
Genesis Trading affirms that initially after its launch, bitcoin and ether shared the loan book with monero. Gradually, the demand for ether dropped as its prices fell substantially. Meanwhile, demands for other cryptocurrencies such as litecoin, ripple etc. increased.
Genesis Trading claims that out of $553 million, $130 million is still outstanding. Mostly, the loans lent by the Genesis are used for business operations, investments or betting. Bitcoin loans were mostly employed by the companies to cater and fulfill their needs of working capital.
Michael Moro, CEO of Genesis Global Trading, explained the working of the company. He stated that the company borrowed loans at interest rates of 5 to 7 percent. Later, when Genesis Trading lent loans to other companies, it charged them with the interest rate of 10 to 11 percent to maintain its profit.
While explaining the trends of the institutions, the company also told that now mostly borrowers were inclined to hedge funds, instead of the working capitals that was preferred in the past. Genesis Trading expects to facilitate more and more of these borrowers in the future.