Genesis Posts Another Record Derivatives Trading Quarter With Over $20B in Volume

Bitcoin’s share of its loan mix fell thanks to the Grayscale Bitcoin Trust discount, Genesis said in its Q4 report.

AccessTimeIconJan 27, 2022 at 6:26 p.m. UTC
Updated May 11, 2023 at 5:58 p.m. UTC

Digital currency prime broker Genesis Global Trading posted over $20.7 billion in notional value traded for derivatives during the fourth quarter of 2021, up 62% from the previous record of $12.8 billion in Q3. For all of 2021, derivatives notional value traded of $53.8 billion was up 812% from the previous year.

Genesis is a subsidiary of Digital Currency Group, which owns CoinDesk.

Spot trading volume of $30.8 billion in Q4 was up 23% from the previous quarter, with full-year volume of $116.5 billion, up 463%.

As the Genesis numbers make clear, derivatives trading has been the key driver for boosted volumes at global crypto exchanges, pushing U.S.-based Coinbase, for example, to recently acquire FairX to improve its standing versus competitors. Over the last 24 hours, derivatives trading volumes at Binance were $78 billion versus spot volumes of just $20 billion, according to CoinMarketCap.

Genesis said loan originations hit $50 billion in Q4, up 40% from Q3. Loan originations for all of 2021 were up nearly sevenfold from 2020.

Bitcoin (BTC), however, lost some of its lending mix dominance, with Genesis citing the discount to net asset value (NAV) for the Grayscale Bitcoin Trust (GBTC) as the reason. (Grayscale Investments, which manages the trust, is also unit of Digital Currency Group.)

BTC accounted for just 27.5% of the lending mix at year end against 53.9% 12 months earlier. Gaining share were U.S. dollar and equivalent loans, rising to nearly 40% by the end of 2021 versus 23.2% in 2020.

The firm also said it is seeking to grow its non-fungible token-backed lending portfolio as the sector grows. For now, the company said most of its NFT lending volumes are driven by high net worth individuals.

UPDATE (Jan. 27, 18:33 UTC): Added that Genesis is a subsidiary of Digital Currency Group.


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Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

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