eToro Launches an OTC Cryptocurrency Trading Desk for Institutional Investors
Different companies all over the world want to have access to the cryptocurrency market. But sometimes, they are not able to do that. Banks are taking longer time to enter the OTC crypto market and offer their clients the possibility to invest in virtual currencies, but eToro is not reluctant to innovate. The company has decided to expand and offer a new OTC service to institutional investors.
eToro Opens OTC Trading Desk
eToro, an important trading platform that focuses in retail investors, has decided to expand and open an over-the-counter (OTC) trading desk in the financial city of London. The platform is currently connected to 15 different crypto exchanges that provide liquidity and is also working in order to have its own cryptocurrency exchange.
The company explained that it had an important demand from hedge fund investors that are entering in the crypto market.
Yoni Assia, CEO of eToro, commented to Business Insider:
“We are launching an OTC desk for institutions. We’ve seen more and more interest from corporates and institutions. We’ve actually set up our corporate team here in the UK to start setting up accounts to trade on eToro. We’ve announced that we’re launching the exchange as well so, between the exchange and the OTC desk, we’re also starting to serve more potential institutions and financial institutions.”
Those OTC desk designed for institutions allow players to place massive transactions. In normal exchanges, these movements would cause undesired swings in the market. Moreover, trading in platforms specifically designed for institutions is also a way to avoid losing funds in the case an exchange is hacked.
At the moment, in the United States, Circle Financial and Cumberland mining are operating OTC cryptocurrency services. Moreover, there are other companies like Goldman Sachs that may be ready to offer a similar service. Barclays, was also considering opening a crypto trading desk.
According to Assia, there is a growing institutional demand and interest of public investors. As the company saw this possibility, they decided to offer that to the general public.