Gemini Trading, the bitcoin and ethereum exchange founded by Tyler and Cameron Winklevoss, is set to begin hosting daily bitcoin auctions.
While such auctions are commonplace as a way to determine more accurate closing prices for the New York Stock Exchange or Nasdaq, Gemini is positioning the auction as more than a first its exchange.
Tyler Winklevoss told CoinDesk:
“It’s the first ever end-of-day auction on a bitcoin exchange. It’s a pretty standard feature on traditional exchanges that didn’t exist on a bitcoin exchange until now.”
The launch represents the latest effort by the Winklevoss brothers to create investment mechanisms for mainstream investors.
Since 2014, the Winklevoss Bitcoin Trust has been working to open the first bitcoin exchange traded fund (ETF) on a major stock exchange. In June, after almost three years, the Trust filed to move their application from Nasdaq to Bats, a move that accelerated progress even if the final decision could still be months away.
How it works
Beginning at 5pm ET, Gemini will begin accepting two-sided bids in BTC/USD for the next day’s auction, ending at 4pm. Gemini expects to add additional trading pairs at a later date.
By concentrating liquidity at a single moment each day, Winklevoss says the auction will