Crypto Boom: Surging Demand for Bitcoin-Backed Loans and Anticipation of Spot Bitcoin ETFs

By: Eva Baxter

The investment advisory firm, Two Prime, has reported about $2 billion in demand for bitcoin-secured loans since they started offering them in September. This surge in demand correlates with the cryptocurrency market's increasing acceptance by institutional investors. Simultaneously, the market in lending digital assets, particularly bitcoins, is seeing an expansion with the launch of Tokenet, a new crypto-lending platform. Tokenet, launched by the former executives of financial services firm Cantor Fitzgerald, plans to service an expected wave of institutional clients following the potential U.S approval of spot Bitcoin exchange-traded funds (ETFs). The platform is designed to allow firms to borrow and lend digital assets while managing collateral positions, and provides risk management tools to mitigate counterparty risks.