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

Odaily 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 have interpreted the narrative of moving toward 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 one taken by the U.S. SEC when launching cryptocurrency ETFs. Before considering ETFs for other digital assets, the SEC focused only on Bitcoin ETF applications. Only after approving the first Bitcoin ETFs did the SEC begin considering 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 substantially, and we could see increased volatility as markets adjust to the inclusion of assets. Some assets could rally overnight on speculation that they are part of U.S. reserves. Market makers will 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 it will lead to a surge in demand for “deep” liquidity. This in turn means that market makers will need to “expand” liquidity operations across different jurisdictions to ensure that the market remains deep and stable. (Bitcoin.com)