Crypto brokerage Genesis reports a decline in lending in the first quarter because the market slump continues

Crypto brokerage Genesis reports a decline in lending in the first quarter because the market slump continues

Genesis, the crypto currency broker company for institutional investors, reported 44.3 billion

The decline is due to a large sale of all crypto systems, Genesis wrote in a first quarter Results report Friday. The ratings in the entire area are almost half as high as in November, the report added.

The genesis lending business focuses on lending to cryptofonds and other institutions to secure investments or empty sales of digital assets. The brokerage company has given loans of $ 195 billion since the start of the loan platform in 2018.

Despite the latest volatility, new institutes that have entered the market showed a strong demand for bar loans in the past quarter, said Genesis.

"Institutions develop their crypto strategies and strengthen their understanding of this industry, even in the middle of market uncertainty that marked the beginning of this year," said CEO Michael Moro in a statement. "While we further deepen the cooperation with our customers across the wide range of genesis product range, we strive to further expand our market share and provide innovative strategies for customers in order to gain access to this growing investment class."

The Trading Desk of Genesis grew in the first quarter of the year. The fictional traded derivative volume- including the negotiated block and stock exchange-traded futures- reached $ 27.8 billion in the quarter, which corresponds to an increase of 33 % compared to the fourth quarter of 2021.

investors are less and less interested in single-asset portfolios, especially when it comes to Bitcoin, Genesis said in the report.

"We have found a macrotrend since the middle of last year, in which BTC gradually became a smaller proportion of our portfolio mix," the report said. "Many customers are also the focus [Decentralized Finance] financing options in these native layer 1 blockchains, which sometimes offer more attractive prices than in typical ETH blockchain protocols."

A possible explanation: There are few opportunities for Bitcoin Cash and Carry Base Department, since the three-month-running and the three-month basis was compressed in the first quarter, the report says. The same trend can be observed in the Ethereum base trade, which was previously traded on Bitcoin.

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The contribution "Crypto Brokerage Genesis Reports Q1 Lending decline as as market slump continues" is not a financial advice.