Will Gemini’s Move Consolidate the Cryptocurrency Market?

gemini crypto exchange

Gemini plans to ease block trading of virtual currencies. The service connects both buyers and sellers of digital currency in large quantities. This service will also operate separately from the existing order books of the firm.
Gemini will launch the block trading service on April 12, 2018.
Block trading involves private sale or purchase of assets in large quantities between entities. The approach is used mainly by hedge funds and institutional investors in the stock market. It is done to avoid affecting prices dramatically in the open market.
For example, if an individual wants to buy 10,000 Apple shares, At the current price of $170 per share, the cost will be $1.7 million. If this is sent through a normal brokerage account, it may disturb the market, and the individual will spend more than necessary for the investment.
The individual may decide to approach a blockhouse to make a deal. This house connects the individual with a handful of sellers, and the transaction is conducted privately with a non-competitive price as agreed by the parties.
Block trading works well in the crypto world. Reuters reported that 3 firms are doing the same thing in the united states. They are Genesis Global Trading, Circle, and Cumberland Mining.
If this firm enters the market, it may take the forefront in this industry. This is because the company has gotten the trust of investors as a regulation complaint cryptocurrency trading platform. Its services may also be cheaper because it is presently overseeing order books for Ether and Bitcoin. The firm is involved in other digital currency related financial products such as bitcoin futures.
The company made a statement and announced how this service would work. They said that any customer could make a block order that specifies what they want to sell or buy, the quantity and the price. The market makers receive the collar price, quantity and minimum quantity related to the block order. Where the market maker agrees to the terms, it becomes an indication of interest, and the order will be filled.

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