(Bloomberg) -- Genesis, one of the largest cryptocurrency lenders and brokerages for institutional investors, said it originated more than $40 billion in new loans in the second quarter, a 9% drop from the previous three-month period. 

The company had $4.9 billion in active loans as of the end of June, and said it saw more than $17 billion in spot volume trading during the second quarter, according to a report released Wednesday. Institutional activity was “muted” during the stretch and in June in particular amid an onslaught of negative crypto-centric events, including the implosion or bankruptcies of different hedge funds and lenders. Meanwhile, it saw a 66% drop in active loans outstanding to $4.9 billion from $14.6 billion in the first quarter. 

“Genesis was not immune to the market drop and the damage to overall sentiment,” the report said, adding that the company had loan exposure to hedge fund Three Arrows Capital, which infamously crumpled in June. 

Genesis is a subsidiary of Barry Silbert’s Digital Currency Group. It lends to borrowers such as crypto funds which use the assets to short digital currencies, hedge investments, or invest in yield-generating platforms. Wednesday’s report also showed that Genesis’s derivatives desk traded nearly $27 billion in notional value, a drop of 4% from the January-March period. 

Crypto lenders were under the spotlight at the start of the summer when a number of hedge funds and lenders said they were having trouble amid the drop in digital-asset prices. Bitcoin is down roughly 50% this year to around $24,000, and Ether, the second-largest coin, has lost a similar amount to trade around $1,834. In June, Bloomberg News reported that Genesis said its lending activity had still been strong and that clients were coming to it for yield opportunities.

Industrywide, crypto lending suffered a strong contraction in the recent quarter, resulting in a shift in market structure,” the report out on Wednesday said. “However, Genesis continued to be an active participant in yield markets in perpetuity and serviced all our clients’ needs on both the demand and supply side.” Crypto credit markets will continue to evolve, it said, and institutional lending will continue to be a core part of the company’s overall prime offering. 

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