eToro, a social trading platform, is set to establish an over-the-counter (OTC) trading service in London for digital currencies due to the increase in the number of interested institutional investors.
Yoni Assia, CEO of the company, said, “We are launching an OTC desk for institutions. We’ve seen more and more interest from corporates and institutions.”
The OTC desk will be launched especially for those investors that have huge funding capabilities. The brokers of the company will pool liquidity between numerous exchanges to settle all the orders. It has been providing trading services for crypto, stocks and other assets and deals with 15 virtual currency exchanges internationally. Currently, it is planning to launch its own crypto exchange.
Assia added, “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.”
It should be noted that popular financial institutions were against digital currencies till 2018 but now are giving considerable attention to the technology. In order to expose traditional investors to crypto trading, CBOE and CME Group launched bitcoin futures at the end of 2017.
Amidst a steep downfall in the crypto market from $800 billion in December last year to $280 billion today, institutional players are still backing virtual coins.
Circle, a crypto start-up backed by Goldman Sachs and Cumberland Mining, a division of DRW have recorded a rise in institutional level participants. The former has started to trade digital coins on behalf of its clients while Fidelity and JPMorgan are also set to enter the space.
However, the CEO stated that it was still early to diagnose the amount of interest bigger investors have in the business but also claimed that few hedge fund owners have contacted him.
As per news from Financial News, bankers are in initial level talks with the trading platform for a possible IPO. Assia did not seem in a hurry when he said the discussions are still “in a standard course of business for a business that raised $100 million and significantly scaled its revenues.” He added that launching an IPO was not a mandatory step for the company. Bankers around the globe are keen on cashing in on people’s expectations towards virtual currencies.
Earlier this month, celebrated investor, Jay Edward Smith, stated that he admires the structure of social trading acknowledging it as a service that empowers small-time inventors. He also praised eToro and its community as he personally uses the platform.
His claims hold gravity as the investors is popular among young crypto enthusiasts. The statements can have a positive effect on such businesses for they are being marketed by someone respectful.
As of now, the trading firm a positive phase and is hoping to capitalize through its new trading exchange. If it gets successful in dealing with institutional players then nothing will be able to stop its growth as a top trading stage.…