Crypto Buyers Face 'Possible Limitations' on eToro This Weekend

The company cited issues relating to poor liquidity in the face of heightened demand.

AccessTimeIconJan 14, 2021 at 8:44 a.m. UTC
Updated Sep 14, 2021 at 10:56 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Multi-asset brokerage eToro has issued a warning to users looking to buy bitcoin and other cryptocurrencies over the coming weekend.

According to an email sent to customers and as reported by Bloomberg on Wednesday, the Israel-based company said customers could face "possible limitations" due to "challenges" in the platform's ability to support buy orders.

The company said it may impose limitations on customers looking to purchase cryptocurrency assets due to complications arising from a lack of market liquidity.

The brokerage may set a temporary maximum exposure amount per cryptocurrency asset per client, as well as temporarily suspending the ability to place new buy orders, according to a copy of the letter posted online.

Spreads on cryptocurrency assets may also be wider than usual resulting from "unprecedented conditions in the market" as demand surges from newcomers for digital assets.

Users on the platform have skyrocketed in recent weeks, with eToro opening 380,000 new accounts. Its cryptocurrency trading volume is 25 times higher than January 2020, per Bloomberg's reporting.

The disruption to services has also filtered over to traders regarding leveraged cryptocurrency positions who called foul on Sunday when their positions were abruptly closed due to "extreme market volatility."

As such, customers are now being warned that the brokerage platform may make further changes to their cryptocurrency offerings "at very short notice."

"Our experience of the 2017 crypto rally means that we understand the possible consequences of extreme volatility in crypto markets. We want to ensure that our clients fully understand the possible risks," an eToro spokesperson told CoinDesk via email.

UPDATE (Jan. 14, 11:50 UTC): Adds comment from eToro spokesperson.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.