Gemini, a cryptocurrency exchange on Monday announced that it will roll out block trading for bitcoin and ether with effects this week.
The feature which will give customers access to make high-volume exchanges that won’t be seen in the exchange’s order book until they have been filled – will commence on Thursday, Gemini stated. There is a limited threshold of 10 bitcoin to 100 ether for the block trades, which is to say this feature cannot be used by smaller traders.
Gemini has created the block trading addition as a means to establish “an additional mechanism to source liquidity when trading in greater size.”
Block trading permits larger traders like hedge funds to purchase or sell large volumes without immediately influencing the price. Another alternative is to place-over-the-counter trades, which takes place out of the exchanges or have traded in smaller portions to cut down on their impact on supply and demand.
Market customers – who make the orders – choose whether the trade is a buy or sell, the less quantity and a price target. This data referred to as an indication of interest, is equally made available to all market users.
The exchange said in a blog post that, “In accordance with our commitment to an equitable, transparent, and rules-based marketplace, block orders will be electronically broadcast to participating market makers simultaneously, ensuring best execution and price discovery for those participating in the program.”
Gemini, founded by investors Cameron and Tyler Winklevoss, had earlier hinted that the exchange might add more cryptocurrencies for trading in the future.