Gemini Block Trading will allow large customers such as hedge funds to trade large amounts without affecting the prices immediately. The minimum quantity is 10 BTC and 100 ETH.
Gemini cryptocurrency exchange has announced the launching of the Gemini Block Trading to serve those intending to sell and buy large quantities of digital assets outside of the usual order books. The new facility goes live at 9:30 am ET on Thursday, April 12th.
It applies to Bitcoin and Eth trading and the minimum quantity is 10 BTC and 100 ETH. With it, large traders such as hedge funds can buy or sell without affecting the price immediately. The alternatives are placing over-the-counter trades outside of the exchanges or splitting trades into smaller chunks to minimize effects on supply and demand.
The company announced the move on their website blog.
The facility will serve as “an additional mechanism to source liquidity when trading in greater size.”
To use the system, a customer will need to specify the quantity and minimum required to fill quantity and a price limit.
Orders will be electronically broadcast to those participating market makers, simultaneously. This will help in best execution and price discovery. The information will further go live on the company’s market data feeds, ten minutes after the trade.
The block order is filled if a market maker agrees to make a market to satisfy the Indication of Interest. Customers can participate in block trading by contacting firstname.lastname@example.org.