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Market Maker Gravity Team CEO: The U.S. digital asset reserve should be based on Bitcoin

Market Maker Gravity Team CEO: The U.S. digital asset reserve should be based on Bitcoin

Bitget2025/02/16 08:01

Odaily Planet Daily reports that Gravity Team market maker and co-founder and CEO Martins Benkitis believes that any digital asset reserves suggested by Trump's executive order should be based on Bitcoin, which applies to any country considering establishing digital asset reserves.

Some people interpret the narrative of turning to digital asset reserves as a sign that the Trump administration may incorporate other digital assets. Although Benkitis acknowledges that other digital assets can also be included in the reserve, he suggests it should be done in stages later. He compared this approach with the method adopted by the US SEC when launching cryptocurrency ETFs. Before considering ETFs for other digital assets, the SEC only focused on Bitcoin ETF applications. Only after approving the first batch of Bitcoin ETFs did they start considering ETH, SOL and other digital asset ETF applications.
In addition, Benkitis warned that if the U.S government decides to include other assets in its reserve, volatility could surge dramatically,"If they expand their net worth, liquidity of multiple assets will significantly increase; as markets adapt to included assets we might see an increase in volatility. Some assets may skyrocket overnight because they are speculated to be part of U.S reserves. Market makers need to keenly adjust spreads and manage asset risks."

Regarding Trump's emerging interest in cryptocurrencies and its potential impact on markets,Benkitis said he agrees this would lead to a surge in demand for "deep" liquidity.This,in turn means market makers need  to "expand" liquidity operations across different jurisdictions,to ensure market depth and stability.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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