Gemini cryptocurrency exchange run by Cameron and Tyler Winklevoss twin brothers announced the introduction of Gemini Block Trading service that will allow for trading large quantities of bitcoins and other cryptocurrencies outside the firm’s trading books.
The service will go live on April 12, 9:30 a.m. New York time. It will screen orders to participating traders simultaneously, according to a yesterday’s official blog post. Trade information will be published on Gemini’s market data feeds 10 minutes after the transactions are executed. Minimal per block transaction size will be 10 bitcoins.
Exchange contracts are usually being listed in so-called central limit order books. These are a useful tool for traders who make transactions under certain size determined by underlying demand for particular types of assets. Block trade works in a different way: its size and price are negotiated off the exchange and then announced on the market. The announcements are mostly made with some time delay, so that an outside price effect could be avoided.
Until recently, block trades have only been possible over the counter, through market makers or investors willing to take the risk of dealing outside an exchange. The situation has changed, however, together with a number of block-trading companies emerging in Hong Kong, Australia and other markets in response to demand supported by hedge funds and other institutional buyers.
As stated by Cameron Winklevoss in December 2017, he foresees the bitcoin price will skyrocket in an unspecified future making it a ‘multitrillion-dollar asset.’ Winklevoss brothers who are known to be bitcoin billionaires are not going to sell their bitcoins even if their price will hit $380 000 per coin some day.