The lending arm of Genesis Global Trading is still experiencing rapid growth despite the decrease in the number of crypto short sellers. This is according to an announcement that was made yesterday by the company. One of the reasons behind the growth is that the firm is diversifying beyond lending short sellers.
Already in Q1 of 2019 alone, Genesis has written crypto loans worth $425 million. A figure that sees the total amount of loans given out since the company launched operations last March now standing at $1.53 billion.
No One Is Shorting Bitcoin On Genesis Anymore
Also, the firm’s outstanding loans grew by 17% since the end of last year, and by March 30, 2019, stood at $181 million. the report also revealed that the average loan is repaid after six weeks and this explains why the amount outstanding by the end of the period is quite small when compared to the volume produced during the quarter.
The loan book shows that Bitcoin is the most popular currency with BTC denominated loans making up 68%. Its followed by XRP at 6.7% and Ethereum and Litecoin are tied at 3.6% each.
Interestingly, short sellers now account for only 3-5 percent of the company’s loans. It’s a massive drop given that at the start of last year they accounted for almost half of all lending according to Michael Moro who is in charge of the company’s trading and lending business.
Speaking to CoinDesk, Moro noted that “the ability to sell crypto short or bet that its price would fall by selling borrowed coins, was a missing piece for a long time, something that exists in any other existing established world. You can short gold, stocks, why can’t you short cryptocurrency?”
He went on to add:
“But this speculative bet on the downside of Bitcoin started to disappear towards the end of 2018, and now it doesn’t exist.”
Bitcoin is currently trading at $5,447 with a 52% ROI over the past three months according to CoinLore one of the leading coin research and news aggregation platforms.
What’s your take on the tremendous growth Genesis is still experiencing despite the disappearance of short sellers? Share your thoughts in the comment section below.