Leading full-service cryptocurrency prime broker Genesis Global Trading has seen a tripling of spot trading in the first quarter.
Corporate interests accounted for most of the trading, with Genesis attributing part of its success to its Bitcoin treasury product “Genesis Treasury.”
The Q1 report released April 28 revealed that the company had processed $ 31.5 billion in spot trading volume – a 287% increase from $ 8 billion in Q4 2020. It also saw $ 10.5 billion to derivatives trading.
Businesses accounted for $ 8 billion of total spot trading volume, up 25% from the previous quarter. The growth in corporate trade that accounted for the largest share was a significant shift from the passive funds and hedge funds that previously dominated trading in the fourth quarter.
“Much of this increase was due to a mix of first-time clients taking positions in Bitcoin, existing clients adding to their positions, and clients taking a more active approach to managing their exposure.” Genesis wrote.
The crypto broker noted that “the numbers were bolstered,” in part as a result of the launch of Genesis Treasury – a service designed for businesses to gain exposure to Bitcoin through accumulation strategies such as equity, liquidity, and return. The company noted that interest in the Genesis Treasury followed the broader interest of major institutions entering crypto markets, such as Tesla and MicroStrategy:
“When corporate clients started buying Bitcoin for their Treasury bills in Q1, our ratios changed. The arrival of companies such as Tesla, MicroStrategy and Square sparked a wave of interest from companies looking to partner with Genesis Treasury in their own treasury allocation efforts. “
Genesis also posted a surge in crypto lending in the first quarter, with more than $ 20 billion in new loans, compared to $ 7.6 billion in the fourth quarter, with active loans growing to $ 9 billion, up 136 , 4% from $ 3.8 billion at the end of 2020.
Cumulative production is up 94.8%, bringing the total to $ 40 billion since the launch of the lending services in March 2018.
“Our loan portfolio has appreciated significantly due to a combination of new issues through cash, ETH and Decentralized Finance (DeFi) assets, in addition to a significant increase in asset prices in our existing crypto book,” Genesis wrote.