Gemini Exchange Launches Daily Bitcoin Auction Event, 2,104 BTC Transaction on First Day

Gemini, the Bitcoin and Ethereum exchange founded by twin brothers Tyler and Cameron Winklevoss, has launched a daily Bitcoin auction. On the first day of the auction, Gemini handed over a record of 2,104 BTC at a price of $ 593.67 .

Such daily auctions are commonplace for exchanges like the New York Stock Exchange or Nasdaq, but Gemini may be the first of its kind for a bitcoin exchange.

Tyler Winklevoss told CoinDesk:

“This is the first daily auction ever conducted on a Bitcoin exchange, and it’s a fairly standard feature for traditional exchanges, but no other Bitcoin exchange has used it until now.”

The launch of this new feature represents the latest effort by the Winklevoss brothers to create a mechanism for mainstream investors to invest in Bitcoin.

The Winklevoss Bitcoin Trust has been working to launch the first Bitcoin exchange-traded fund (ETF) on a major stock exchange since 2014. In June, the trust decided to switch its listing target from Nasdaq to the Bats exchange, but the answer to whether it will be approved may still take several more months.

How it works

It is reported that the auction will start at 5 pm Eastern Time every day. Gemini will accept BTC/USD bids for the next auction and close at 4 pm the next day. After 22 hours and 50 minutes of bidding time, Gemini will start publishing the "auction price" every minute. Bidders can withdraw their bids before 3:59 pm Eastern Time. At 4 pm, the exchange will close the bidding. Gemini expects that the exchange will add additional trading pairs later.

Winklevoss said the auction would increase bitcoin's liquidity while reducing the impact of institutional buying on bitcoin's price.

The purpose of the auctions is to make it easier for buyers and sellers to find each other, according to Benjamin Small, head of market structure at Gemini.

“The benefit for institutional investors is that the auction attracts counterparties at a specific time,” Small told reporters. “By focusing on a specific moment, the chances of interaction go up significantly.”

Bitcoin Price

It is reported that this auction also needs to rely on the Winkdex Bitcoin Index, whose data source comes from the three exchanges with the largest trading volume in the market.

In the interview, Small pointed out that the index is a free tool prepared for Bitcoin investors, which can help investors understand the reasonable price to buy or sell Bitcoin.