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Genesis Global Trading recently stated that the lack of interest in the world's second largest digital currency, Ethereum (ETH), has declined significantly. Genesis Global Trading is one of the world's leading digital currency investment companies targeting institutional investors. Last March, the company made loans worth $ 553 million in digital currencies, including Ethereum (ETH) and Bitcoin (BTC).
The loan was granted to hedge funds and alternative investment companies. About 60% of the loaned amount was issued in Bitcoin (BTC). At the end of the first quarter of 2018, Ethereum (ETH) accounted for 42% of the remaining balances, according to a Bloomberg report.
According to Genesis Global Trading, most of the hedge funds it has granted in Ethereum (ETH) loans have used these funds to sell the asset short. To short Ethereum (ETH), hedge funds have borrowed Ether for a value of several million dollars and bet on the decline in the value of the digital currency.
This is similar to how many traders in the cryptography market sell Ethereum or Bitcoin for stable securities such as Tether (USDT) and TrueUSD to catch the downtrend. The investment companies lent Ethereum and shortened it to buy more ether as the value of the coin fell.
Remaining balances recognized by ETH increased from 42% to 4%
In the last six months, the balance of the ether on the balance sheet of the investment firm has increased from 42% to 4%. The company said that the massive decline in Ethereum loans shows that the interest of hedge funds on Short Ethereum (ETH) has dropped considerably.
Ethereum has shown great resilience throughout the first and second quarter of this year and has been supported by sufficient volume. The value of digital currency has risen from $ 1,200 in January to about $ 400 in April.
However, the digital currency has seen a massive increase over the next two months. Ethereum ETH jumped to $ 831 over the next two months, double its value. Due to the strong dynamics of Ethereum (ETH) during this period, more and more traders and hedge funds have started to bypass the digital currency.
Genesis Global Trading said that Ethereum loans had dropped significantly after the loss of about 80% of the digital currency in June. In the past two months, bears have been controlling the crypto market. Ethereum has consistently shown highs down.
The digital currency has even tested a new annual low during this period. However, it was not the only digital currency to be. All major digital currencies, including Bitcoin (BTC), XRP (XRP), Bitcoin Cash (BCH), Litecoin (LTC), Tron (TRX), etc., have also suffered a great loss.
Ethereum (ETH) tested a new low annual in September. The coin value has reached a minimum of $ 170. This is the first time Ethereum (ETH) has tested this level since last May.
Ethereum (ETH) Today Price – ETH / USD
Ethereum (ETH) is currently trading at $ 206, after an increase of about 1% in the last twenty-four hours. The current market capitalization of the digital currency is $ 21.23 billion and its trading volume over the past 24 hours is $ 1.20 billion.
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