Winklevoss-Backed Gemini to Offer Block Trading Service to Crypto Whales
- This will allow massive trades to settle off the exchange without upsetting the market.
Winklevoss twins-founded cryptocurrency exchange Gemini on Monday announced that it is introducing block trading facility in a bid to cater to the increasing number of institutional traders trying to trade with large amount especially hedge funds.
Gemini’s order book
Gemini’s block trading service will go live on April 12 at 9:30 am (EST). This feature will allow the customers to book high-value orders which will not appear on the exchange’s trade book until they are confirmed. The exchange will publish the trade information on its data feed every 10 minutes after the trades are executed.
Moreover, there is a minimum threshold of 10 BTC or 100 ETH to participate in block trades.
What is Block Trading?
The publically open trading exchange is very sensitive to high-value trades. Moreover, most of the exchanges maintain a central limit order books to keep all trades under a certain size and limit based on the demand for the stock or asset. Any order beyond these limits often hurts retail traders as it generates a false signal of market movement.
To overcome this barrier, exchanges deployed block trading. All lock trading orders are executed outside the primary order book of the exchange and are settled privately between the involved parties.
Block trading companies have recently gained massive popularity in Asian trading hubs such as Hong Kong and also in Australia. According to Bloomberg, Circle Trade is directly moving more than $2 billion in digital asset every month.
In an official blog post, Gemini explained: “In accordance with our commitment to an equitable, transparent, and rules-based marketplace, block orders will be electronically broadcast to participating Market Makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term simultaneously, ensuring best execution and price discovery for those participating in the program.”
Recently, we have seen massive market movement due to the dumping of assets by crypto whales. A massive sell-off by a Mt. Gox trustee single-handedly crashed the price of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term to nearly $6,000.
Now with block trading options present, institutions with massive crypto assets can trade without the concern of causing a crash.
Winklevoss twins-founded cryptocurrency exchange Gemini on Monday announced that it is introducing block trading facility in a bid to cater to the increasing number of institutional traders trying to trade with large amount especially hedge funds.
Gemini’s order book
Gemini’s block trading service will go live on April 12 at 9:30 am (EST). This feature will allow the customers to book high-value orders which will not appear on the exchange’s trade book until they are confirmed. The exchange will publish the trade information on its data feed every 10 minutes after the trades are executed.
Moreover, there is a minimum threshold of 10 BTC or 100 ETH to participate in block trades.
What is Block Trading?
The publically open trading exchange is very sensitive to high-value trades. Moreover, most of the exchanges maintain a central limit order books to keep all trades under a certain size and limit based on the demand for the stock or asset. Any order beyond these limits often hurts retail traders as it generates a false signal of market movement.
To overcome this barrier, exchanges deployed block trading. All lock trading orders are executed outside the primary order book of the exchange and are settled privately between the involved parties.
Block trading companies have recently gained massive popularity in Asian trading hubs such as Hong Kong and also in Australia. According to Bloomberg, Circle Trade is directly moving more than $2 billion in digital asset every month.
In an official blog post, Gemini explained: “In accordance with our commitment to an equitable, transparent, and rules-based marketplace, block orders will be electronically broadcast to participating Market Makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term simultaneously, ensuring best execution and price discovery for those participating in the program.”
Recently, we have seen massive market movement due to the dumping of assets by crypto whales. A massive sell-off by a Mt. Gox trustee single-handedly crashed the price of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term to nearly $6,000.
Now with block trading options present, institutions with massive crypto assets can trade without the concern of causing a crash.