Kraken, a bitcoin exchange based in San Francisco, recently made a press release regarding its dark pool service for traders. This can address the usual trading issues in the network, as the market is still relatively small in volume, making large orders capable of moving prices significantly.
With a bitcoin dark pool, other traders can be able to place orders without letting their other traders find out. Traders can anonymously place large buy or sell orders without revealing their interest to other traders. This will prevent outsized orders from moving the markets or causing unprecedented volatility.
Bitcoin Dark Pool Features
Kraken clients who make dark pool orders will be charged an extra 0.1%. As of this writing, the minimum threshold for making a dark pool order at the time of this reporting is 50 Bitcoins or about $11,500. Bitcoin global trading volumes have risen from $15 billion in 2013 to $23 billion in 2014.
The exchange will charge an extra 0.1% for dark pool orders. Dark pool trading is available to all Kraken clients with accounts verified to Tier 2 or higher based on the bitcoin exchange’s account tiers. The dark pool will accept orders for trading between bitcoins and EUR, USD, JPY or GBP. Dark pool pairings are designated by a “.d” extension (ex: XBT/EUR.d or XBT/USD.d).
The company was founded in 2011 and is consistently rated the top bitcoin exchange by independent news media and was the first Bitcoin exchange listed on Bloomberg terminals. Kraken is trusted by hundreds of thousands of traders, along with the Tokyo government and court-appointed trustee, and BaFin regulated Fidor Bank, with an exclusive partnership and full regulatory compliance.
The team is led by CEO and co-founder Jesse Powell. Kraken also has an iOS app available, which allows users to trade bitcoin on the go or to check up on prices every now and then.