Genesis Trading, a leading cryptocurrency brokerage firm, has observed a surge in demand from traditional financial institutions for exposure to digital assets. The company’s CEO, Michael Moro, said in a recent interview that the crypto space is witnessing an “institutional land grab” as more established players enter the market. Genesis Trading thinks the second quarter of the year will be remembered as the time when the establishment came running on a “land grab” for crypto.
Moro explained that Genesis Trading provides two main services to its clients: over the counter (OTC) trading and lending. OTC trading allows investors to buy and sell large amounts of cryptocurrencies without affecting the market price, while lending enables them to earn interest on their idle crypto holdings or borrow crypto for various purposes.
According to Moro, Genesis Trading has seen a significant increase in both OTC trading and lending volumes in the past year, especially from institutional investors such as hedge funds, family offices, endowments, and pension funds. He said that these investors are looking for ways to diversify their portfolios and gain exposure to the high returns and low correlation of crypto assets.
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Moro also noted that the institutional interest in crypto is not limited to Bitcoin, the largest and most popular cryptocurrency. He said that Genesis Trading offers trading and lending services for more than 20 different digital assets, including Ethereum, Litecoin, Bitcoin Cash, and stablecoins. He added that some of the newer and more innovative crypto projects, such as decentralized finance (DeFi) and non-fungible tokens (NFTs), are also attracting attention from institutional clients.
Moro attributed the growing institutional adoption of crypto to several factors, such as the improved regulatory clarity, the increased availability of custody and infrastructure solutions, and the enhanced education and awareness of the crypto industry. He said that Genesis Trading is committed to providing its clients with the best execution, liquidity, and service in the crypto space, and that he expects the institutional demand for crypto to continue to grow in the future.
According to the company’s report, Genesis facilitated over $42 billion in spot trading volume, a 287% increase from the previous quarter. The report also highlighted the growing demand for crypto lending and borrowing services, as well as the expansion of the company’s derivatives and prime brokerage offerings. Genesis highlighted a number of “landmark announcements” including the slew of applications for spot bitcoin ETFs and a “drumbeat” of new trading venues and products offered by traditional finance.
One of the main drivers of this growth, according to Genesis CEO Michael Moro, is the “land grab” mentality of the established players in the financial industry. Moro said that many of these institutions are realizing the potential of crypto as an asset class and a technology and are eager to gain exposure and market share before their competitors do. He cited examples such as PayPal’s integration of crypto payments, Visa’s acquisition of CryptoPunk NFTs, and Morgan Stanley’s investment in Grayscale Bitcoin Trust.
Moro also noted that the regulatory environment for crypto is becoming more favorable but not clear, especially in the US, where several crypto-native officials have been appointed to key positions. “It is becoming increasingly clear that as long as there is regulatory scrutiny without clear guidance on rules and regulations, financial services firms will continue expanding their operations abroad,” Genesis added. Moro mentioned Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), who has taught courses on blockchain and digital currencies at MIT; Brian Brooks, the former acting comptroller of the currency, who is now the CEO of Binance.US; and Hester Peirce, an SEC commissioner who is known for her pro-crypto stance.
Moro concluded that Genesis is well-positioned to capitalize on the growing interest and adoption of crypto by institutional investors. He said that the company’s mission is to provide a full suite of services that cater to the needs and preferences of different types of clients, from hedge funds and family offices to corporates and high-net-worth individuals. He added that Genesis is constantly innovating and expanding its product offerings, such as launching a new platform for NFT trading and custody.
