It only means that bitcoin is reaching even the largest market where the largest cryptocurrency brokers are. Institutional borrowers are holding and investing more cryptocurrency to secure their finances through lending when the market hit
the bull run again.

Please name all those hedge funds that borrowed money in crypto. That seems to be one of the most retarded things they've ever done. If you work somewhere in USA or EU then it is much easier to take a usual bank loan with 0-3% instead of borrowing cryptocurrencies that may easily increase their value by 5% in a single day (despite the interest, earned by genesis).

"IF" makes all the difference here, as @Haunebu pointed out it's a high-risk model since it all depends on potential value. They must be truly confidence for the future.

@Haunebu
Halving may or may not pump Bitcoin. And in case, it pumps like we're thinking, it may bring BTC to what? only $8k-$10k? Still far from its ATH.

Not only for that all those hedge funds , it is retarded thing for genesis also to give long term crypto loans. If price at the end is somewhat at very high level then the loan is surely going to be defaulted and causing loss to both the business involved.

It only says that the bitcoin or all the cryptocurrency industry is starting to make it. Maybe these people already understood the algorithm of bitcoin from the time it will rise and the time it will go low. And these borrowers are actually waiting for the next bull run for them to get their loan paid. However, because of New York's statement about the Tether, seems like all of these people are messed up.

I didn't realize that there were companies which had significant investments in cryptos and offered them as loans to other large investors groups. The fact that there's $1.5 billion in investment and loan opportunities in cryptos is surprising though, as I certainly wasn't expecting there to be a securities market that large. At least this makes it somewhat obvious that a large portion of big-named cryptos (in the sense of $ values) are owned by companies that have a vested interest in their success.

I don't know what they're loaning the crypto out for, though. I would assume that a majority of it is directed towards securities positions, such as shorts and futures, but there's a lot of different things that could potentially be considered for loans in cryptos. I don't know what their business plan is, but considering the number of assets they have and their high $ values, it's working for them.

in my opinion, loans are a good way to get profits, especially in the world of commerce.

bullish will provide benefits, but, sometimes we must always see and control market volatility. and that is not easy.

That is a massive fund. The hedge funds will quickly make profit from cryptocurrency volatility. Hope these guys are not the ones quickly shorting the bitcoin when it rises, wherein we quickly see an offload of about $10B from the market and sometimes we see a quick massive fund inflow. This is something to glory about, it shows how promising and big this market is going to be.

If you can make loans that have a good set of collateral behind it, you're going to mitigate a ton of the risk that comes with loans. Especially if you can physically take that collateral provided and keep it in your possession until the loan is paid back. Even if they default on the loan, you have something that you own which you can sell to recover the loss, or maybe make a small profit if the collateral is valued enough. Loans can be very profitable, you just need to know what you're doing.

Loans are also how the fiat economy grows, as a side note. Debt is literally what makes it tick. Bitcoin could run into the same situation if there was a sudden flux of outgoing loans, where there's less Bitcoin in the network than what needs to be paid back between interest and the principal.