Market maker Gravity Team CEO: US digital asset reserves should be based on Bitcoin

Odaily Planet Daily News Martins Benkitis, co-founder and CEO of market maker Gravity Team, believes that any digital asset reserves recommended by Trump's executive order should be based on Bitcoin, which applies to any country considering establishing a digital asset reserve. Some people interpret the narrative of turning to digital asset reserves as a sign that the Trump administration may include other digital assets. While Benkitis acknowledged that other digital assets could also be included in the reserves, he suggested that it should be done in stages later. He compared this approach to the approach taken by the U.S. SEC when launching a cryptocurrency ETF. 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 the SEC begin to consider ETF applications for digital assets such as ETH and SOL. Additionally, Benkitis warned that volatility could surge if the U.S. government decides to add other assets to its reserves, “If they expand their net assets, liquidity across multiple assets will increase significantly, and we could see increased volatility as the market adjusts to the inclusion of assets. Some assets could rise overnight because they are speculated to be part of the U.S. reserves. Market makers need to be sensitive to adjusting spreads and managing asset risk.” Regarding Trump’s new interest in cryptocurrencies and the impact it could have on the market, Benkitis said he agrees that this will lead to a surge in demand for “deep” liquidity. This in turn means that market makers need to “expand” liquidity operations across different jurisdictions to ensure that the market remains deep and stable. (Bitcoin.com)