Bitcoin has tanked this week, falling about 16%.

But the bearish turn has been a blessing for Genesis Global Trading's new lending business.

Genesis originated $30 million in crypto loans on Tuesday, its largest amount ever, as many borrowing crypto are doing so in order to take a short position.

Bitcoin markets have been in a tailspin this week, but that's actually been a blessing for one trading firm's burgeoning new lending business.

Genesis Global Trading, a crypto trading shop based in New York, launched a crypto lending unit, Genesis Capital, earlier this year. That business originated $30 million in crypto loans on Tuesday, its largest amount ever, according to chief executive officer Michael Moro. The company typically lends out around $2 million per day on average.

In a sense, it could be a bearish indicator for the market. Many of the people who are borrowing crypto from the firm are doing so in order to take a short position on a given coin.

At last check, the price of bitcoin — the largest crypto — was down about 15% at $6,517 a coin.

"Hedge funds could borrow bitcoin to short it, for example," Lex Sokolin, a partner at Autonomous NEXT, the financial-technology analytics provider, said. "This would mean they borrow some amount in bitcoin, sell it, and then repay in bitcoin (at whatever price) whenever the loan comes due."

Part of the bump in lending is also tied to the launch of Ethereum Classic trading on Coinbase, according to Moro.

As for the business' next steps, Moro said he expects to expand its services. One thing the firm could do is start doing is put the collateral they are given for loans to work.

"All the people borrowing and shorting are putting up collateral," he said. "We have the ability to turn around and do whatever we want with the collateral."

The company is also considering US dollar loans. This would mean a bitcoin holder who wants to liquidate his or her crypto could do so without selling it but still have access to cash.

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