13 Jan 2014 / Forex Magnates – eToro joins the growing number of FX broker dealers offering Bitcoin derivatives. The London-based FCA regulated firm has reported that it has gone live with a CFD Bitcoin contract. The moves comes after one month of beta testing as reported in December 2013.
eToro states in its press briefing that it offers Bitcoins from an investment perspective with certain requirements put in place, for example, the product will be offered to users as an executable instrument four times a day, the company stated that this is due to the price volatility in Bitcoins.
Apart from self-traders, eToro’s offering attracts investors who prefer to copy or follow traders, Bitcoins will be available on eToro’s social trading platform, Open Book.
Bitcoins have had their fair share of scrutiny from investors and regulators in the last twelve months. The crypto-currency saw rapid price movements which consequently saw Bitcoins cross the formidable $1,000 mark in November trading at $1,250.
FX brokers first initiated their interest in April last year with IG and Spreadex front running with the launch of a tradable instrument. However, due to liquidity and risk principles the instrument hasn’t taken off.
On the other hand, high end retail firms started to roll out bitcoin products in the latter months of the year with Plus500, AvaTrade and Markets.com offering the product.
eToro, a predominantly retail orientated broker, was expected to be one of the early providers of the product. Yoni Assia, Founder and CEO of eToro spoke about the firm’s new product launch in a statement: “Both eToro and Bitcoin were born out of the social revolution. It’s therefore very apt for us to take the lead in making Bitcoin – essentially the world’s first crowdsourced currency – available to the masses. Through our social network, individuals can easily and conveniently invest in Bitcoin and take advantage of a new type of investment either with their own strategies or by harnessing the wisdom of our members.”….. Read more
