eToro has added several enhanced trading and risk management tools to its crypto exchange, which are targeted at the growing segment of professional and institutional crypto traders, which has a unique set of trading and commercial requirements.
eToroX employs a progressive inverted “Taker-Maker” fee model instead of the traditional “Maker-Taker” pricing structure. The fee model allows a rebate to be paid to takers who execute market orders above certain volumes, rather than them paying for the privilege of trading. According to the firm, research from the University of Melbourne concluded that the net impact of those models on market quality is positive, showing price efficiency and an increase in liquidity with an inverted venue market share, with a decrease in short-term
Yoni Assia, CEO of eToro, said, “2020 is proving to be a significant year for institutional interest in crypto investing. 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.”
eToroX has added a range of new Order Types, to amplify user abilities in trading tokenized FX, commodities, and crypto 24×7, including FOK, IOC, GTC, and GTD, as well as special Iceberg orders.
In addition, the crypto exchange established a cold storage custody solution, of the same high standard as those utilized by traditional financial houses, an API with FIX protocol, REST and WebSocket protocols, and a credit line program for spot trading, enabling users extended access to eToroX’s deep liquidity markets, and allowing them to trade with up to ten times more volume.
eToroX’s new approach aims to address the many barriers to the institutional adoption of crypto. Institutional traders joining 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.
Doron Rosenblum, Vice President of Business Solutions, added: “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. We want to address these concerns directly, as outlined in our position paper, in a bid to open up the crypto ecosystem to both institutional participants as well as pro traders. 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. We are seeing this in eToroX’s data, where the most traded cryptoassets on our platform by institutional investors are stablecoins pegged to commodities and Fiat currencies. We have launched these initiatives today to give these types of traders access to deep order books at a competitive price.”