Bloomberg Law
Jan. 30, 2020, 2:00 PM

Bitcoin Arbitrage Is Driving Demand for Cash, Crypto Lender Says

Olga Kharif
Olga Kharif
Bloomberg News

Cash was king among hedge funds and miners looking to take advantage of arbitrage opportunities and add leverage during the fourth-quarter downturn in cryptocurrency prices.

Genesis Capital said cash and equivalent loans as a percentage of outstanding loans increased significantly for a third consecutive quarter in the three months ended Dec. 31. The loans represented 37.2% of the New York-based lender’s active loan portfolio at the end of last quarter, up from 31.2% in the third quarter and 14% a year earlier. Loans in Bitcoin dropped to 47% of the portfolio, from 63% at the end of June, around when ...

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