eToro’s Professional Crypto Exchange Adds Institutional-Grade Product Suite, Launches Inverted Fee Model

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OUR STORY DISCOVER CRYPTOCURRENCIES NEWS AND UPDATES


The offering includes advanced FIX API, cold storage retention solution, credit line, special order types and a brand new high-performance matching engine

eToro, the multi-asset platform with over 13 million registered users worldwide, has added several enhanced trading and risk management tools to its crypto exchange, eToroX. This new set of tools is aimed at the growing segment of professional and institutional crypto traders, who have a unique set of trading and commercial requirements.

Using a unique and progressive reverse “Taker-Maker” cost model *, eToroX leverages the traditional “Maker-Taker” pricing structure, by allowing a discount to buyers who execute market orders above certain volumes instead of paying for commercial law.

Research from the University of Melbourne examined the few traditional exchanges that used reverse fee models and concluded that the net impact of those models on market quality is positive, showing price efficiency and an increase in liquidity with market share from reverse locations, with a decrease of short-term volatility.

As part of its focus on professional and institutional traders, and their requirements for better risk management tools, eToroX has added a range of new order types to strengthen user capabilities in trading tokenized FX, commodities and crypto 24 × 7, including FOK, IOC, GTC and GTD, as well as special Iceberg orders.

It has also set up a very secure cold storage storage solution of the same high standard as that of traditional financial institutions. In addition, the tools being introduced will include an institutional quality API with the FIX protocol, in addition to the REST and WebSocket protocols, and a credit line ** for wholesale trading, giving users greater access to eToroX’s deep liquidity markets and enabling them with up to 10 times more volume.

According to Peggy Sullivan, senior policy advisor to the U.S. Securities and Exchange Commission,

‘[To] have a more general acceptance of the cryptocurrency or the digital asset space, we must make it easier for institutional markets to access. “

This is confirmed by a report by Aite Group, a global research and consultancy firm, that professional crypto traders find that they “urgently need institutional quality instruments”.

eToro has one new position paper describing the new approach to eToroX, and the external research and interviews with market leaders that prompted it. The position paper outlines all major barriers to crypto institutional adoption and how eToroX has responded to it, detailing the new resources that the crypto exchange has taken to enable institutional traders to move from the world of traditional finance to crypto.

Yoni Assia, CEO of eToro, said:

“2020 will be an important year for institutional interest in crypto investments. The data shows that institutions are buying the largest cryptos by market capitalization, such as Bitcoin and Ethereum, in an effort to stay ahead of the next bull run. In addition, due to the unique way this year unfolds, investors are looking for uncorrelated alternative investments and cryptocurrency seems the ideal answer to many. ”

Vice President of Business Solutions, Doron Rosenblum, added,

“Institutional investors have not been able to enjoy comparable quality trading tools in the crypto industry as they rely on traditional asset classes. We want to address these concerns directly, as outlined in our position paper, in an effort to open up the crypto ecosystem to both institutional participants and professional traders.

Institutions are now much more aware of how a 24 × 7 risk management mechanism makes it possible to constantly manage risks, which is only possible through the crypto ecosystem. We see this in the data from eToroX, where the most traded cryptoassets on our platform by institutional investors are stable coins pegged to commodities and fiat currencies. We launched these initiatives today to give these types of traders access to deep order books at a competitive price. ”

Institutional traders who join eToro’s crypto exchange will also enjoy a VIP onboarding process with dedicated, one-to-one service.

eToro launched its on-chain crypto exchange in 2019 as part of the company’s commitment to the belief that one day all investable assets will be tokenized and traded on the blockchain.

* Click here for a full breakdown of our fees.

** The eToroX credit line program is subject to our acceptance and eligibility policy.


About the eToro group

eToro was founded in 2007 with the vision to open up world markets so that everyone can trade and invest in a simple and transparent way. The eToro Group consists of the eToro platform, our multi-asset trading and investment platform, which manages our crypto portfolio and exchange.

The eToro platform allows people to invest in the assets they want from stocks and commodities to cryptoassets. We are a global community of over 14 million registered users sharing their investment strategies; and anyone can follow the approaches of those who have been most successful. The simplicity of the platform makes it easy for users to buy, hold and sell assets, track their portfolio in real time and conduct transactions whenever they want.

As the technology has evolved, our company evolves. In 2018, we launched our professional crypto exchange along with the eToro Wallet. Together with the investment platform, eToro offers a holistic service for buying, selling and holding cryptoassets. We believe that by using blockchain technology we can become the first truly global service provider, allowing everyone to trade, invest and save.

Disclaimer

eToro is regulated in Europe by the Cyprus Securities and Exchange Commission, regulated by the Financial Conduct Authority in the UK and by the Australian Securities and Investments Commission in Australia.

eToroX is incorporated in Gibraltar with company number 116348 and has its registered office at 57/63 Line Wall Road, Gibraltar. The distributed ledger technology (DLT) provider was licensed in December 2018 by the Gibraltar Financial Services Commission (license number FSC1333B).

Featured image: Shutterstock / WHYFRAME

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