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eToro Enhances Institutional Crypto Trading with New Tools

eToroX, the crypto-focused exchange of eToro, has added several enhanced trading and risk management tools as the platform is seeing a growing number of professional and institutional traders, the multi-asset exchange announced on Thursday.

The exchange has added a few new order types including FOK, IOC, GTC, and GTD, as well as special Iceberg orders, all of which will offer better risk management to its institutional client base. Furthermore, it has also established a cold storage solution for storing digital assets.

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It also introduced an institutional-grade API with FIX protocol and is offering a credit line program for spot traders that will allow them to trade up to ten times more volume.

“2020 is proving to be a significant year for institutional interest in crypto investing,” eToro CEO Yoni Assia said. The data is showing that institutions are buying the biggest cryptos by market cap such as bitcoin and ethereum, in a bid to position themselves ahead of the next bull run.”

“Furthermore, due to the unique way in which this year is playing out, investors are seeking uncorrelated alternative investments, and cryptoassets seem to be the ideal answer to this for many.”

Changes in fee structure

In addition to that, eToroX also flipped the traditional “Maker-Taker” pricing structure and is now offering a rebate to the takers who are executing market order above a certain volume, rather than paying them only for trading.

The announcement cited a study by the University of Melbourne that found this type of inverted fee model makes the price more efficient and also increase liquidity with a decrease in short-term volatility.

“Institutional investors have not been able to enjoy a similar quality of trading tools in the crypto industry as those they rely on in traditional asset classes,” Doron Rosenblum, vice president of business solution at eToro, added. “Institutions are now much more aware how a 24×7 risk management mechanism allows the management of risks on a constant basis, which is only possible via the crypto ecosystem.”


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