NEW YORK, Sept 21 Gemini Trust Co, the
U.S.-based bitcoin exchange founded by investors Tyler and
Cameron Winklevoss, announced on Wednesday it will launch the
first-ever auction for the digital currency aimed at
facilitating high trading volumes and providing better prices.
The auction will kick off later on Wednesday initially for
the U.S. dollar/bitcoin currency pair, Gemini said, and will
eventually open the mechanism to all other digital currency
pairs in the coming weeks.
Daily auctions are a common occurrence at traditional
exchanges such as the New York Stock Exchange and Nasdaq,
enhancing price transparency and discovery.
The auction's launch on the Gemini exchange represents one
of multiple efforts by market players to push trading of bitcoin
and other digital currencies into the mainstream investing
"If you were building a securities exchange today, an
auction would be a core feature," said Tyler Winklevoss, chief
executive officer at Gemini in New York.
"We've built this trading mechanism to further Gemini's
mission of building a next-generation exchange that advances the
future of bitcoin trading."
Gemini said in its blog that the exchange will at 5:00 pm
EDT begin accepting two-sided bids for the dollar/bitcoin pair
for the next day's auction ending at 4 pm. All eligible orders
will be then filled at the final auction price.
In addition, auction trades receive fee discounts and are
eligible for up to a 0.15 percent rebate, as opposed to
over-the-counter trades that can cost upwards of 1-2 percent per
Bitcoin on Wednesday traded at $594.50 on the Bitstamp
platform, with a market capitalization of $9.5 billion,
according to crypto-currency data website coinmarketcap.com.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Andrew Hay)