Crypto Buyers Face ‘Possible Limitations’ on eToro This Weekend
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 they 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.