eToro, the social trading network and CFD broker (which has recently launched a physical stock-broking service) has done a football sponsorship deal in bitcoin.
The news that cryptocurrency broker eToro is sponsoring seven premiership football teams is big enough, but the fact that they are paying in Bitcoin is what has really caught people’s attention.
At first glance, it’s an odd time for eToro as a CFD broker to sponsor football teams as there has been quite a lot of regulatory pressure to move CFDs and other derivative products like spread betting away from retail customers.
But, it’s an interesting move as far as crypto is concerned. eToro’s recent move to provide physical stock broking services so eToro clients can invest, rather than speculate on it’s platform does make sense though.
As a social trading network, traders can copy other traders trades. Presumably, now, traders and investors that want a diverse crypto portfolio and don’t have the time or knowledge can build one by following eToro’s crypto traders.
It’s also notable as the market for CFD trading is actually quite small. Around 150,ooo traders in the UK for example.
But the market for investors wanting to buy and sell cryptocurrencies is vast. Especially in the US, where eToro has launched a crypto only offering.
Iqbal V. Gandham, UK Managing Director at eToro said:
“As a global multi-asset platform where you can purchase the world’s biggest crypto assets alongside more traditional investments, we are excited to be partnering with so many Premier League clubs and make history by being the first company ever to pay for a Premier League partnership in bitcoin.”
IG has recently launched EOS, Stellar and Neo crypto CFD and spread betting markets but does not currently allow physical cryptocurrencies.
eToro’s physical crypto service puts them in a good position for a massive land grab of new clients via the football sponsorship and their existing client base.