E*Trade Reportedly Preparing to Launch Bitcoin and Ethereum Trading for Millions of Users

The cryptocurrency market received a significant boost as E*Trade Financial Corp, one of America’s largest online brokerages, was reportedly preparing to offer Bitcoin and Ethereum trading to its nearly five million customers. The move, first reported by Bloomberg on April 26, signaled a deepening commitment from traditional finance to the digital asset class at a time when Bitcoin was already riding a wave of bullish momentum.

According to unnamed sources familiar with the matter, E*Trade’s crypto trading service would initially support Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies by market capitalization. The platform was set to compete directly with crypto-native exchanges like Coinbase as well as fellow brokerage Robinhood, which had already begun offering cryptocurrency trading to its user base.

TL;DR

• E*Trade, with approximately 4.9 million brokerage accounts, was reportedly planning to launch Bitcoin and Ethereum trading
• The initiative would place crypto alongside traditional assets like stocks, ETFs, options, and bonds on the platform
• TD Ameritrade, a $1.2 trillion brokerage giant, was simultaneously testing Bitcoin and Litecoin trading
• Bitcoin had just formed a “golden cross” technical pattern, with the 50-day moving average crossing above the 200-day MA
• BTC was trading around $5,285, marking five-month highs and approaching the psychologically significant $6,000 level

A Wall Street Giant Opens Its Doors to Crypto

E*Trade’s reported move into cryptocurrency carried weight far beyond a single company’s product expansion. Founded in 1982, the New York-based brokerage had built its reputation on making financial markets accessible to everyday investors. Its platform already allowed customers to trade common stocks, preferred stocks, mutual funds, exchange-traded funds, futures contracts, options, bonds, and fixed income investments. Adding cryptocurrencies to this roster would represent one of the most significant mainstream adoption milestones for digital assets since the 2017 bull run.

The timing was particularly notable. Bitcoin had been gaining ground steadily throughout April 2019, breaking through the $5,000 resistance level earlier in the month and continuing its ascent. By late April, the cryptocurrency had formed a “golden cross” — a bullish technical indicator occurring when the 50-day moving average crosses above the 200-day moving average. According to MarketWatch, this was the first such occurrence since the early stages of the 2016-2017 bull market that eventually saw Bitcoin reach nearly $20,000.

The Broader Brokerage Race

E*Trade was not alone in exploring cryptocurrency integration. TD Ameritrade, managing approximately $1.2 trillion in assets, had been publicly testing Bitcoin and Litecoin trading through a collaboration with crypto startup ErisX. The simultaneous moves by two of America’s largest brokerages suggested a broader industry trend rather than an isolated experiment.

The competitive dynamics were clear. Robinhood had already captured significant market share among younger investors by offering commission-free crypto trading alongside equities. Coinbase, while dominant in the dedicated crypto exchange space, lacked the comprehensive financial services offerings that traditional brokerages provided. E*Trade’s entry promised to bridge this gap, potentially introducing millions of traditional investors to cryptocurrency for the first time within a familiar interface.

Market Context and Price Action

On April 28, 2019, Bitcoin was trading at approximately $5,285 with a market capitalization of around $93.4 billion, according to CoinMarketCap data. Ethereum, the second cryptocurrency slated for E*Trade’s platform, was priced at approximately $157.30 with a market cap of roughly $16.7 billion. The total cryptocurrency market was showing signs of renewed life after a prolonged bear market that had seen Bitcoin fall from its all-time high near $20,000 in December 2017.

The golden cross formation, combined with increasing institutional interest from firms like E*Trade and TD Ameritrade, created a narrative of accumulating momentum. Trading volumes were rising, and sentiment indicators were shifting decidedly bullish for the first time in over a year.

What This Meant for Mainstream Adoption

The significance of E*Trade’s reported crypto plans extended beyond price implications. With 4.9 million brokerage accounts, the platform had the potential to dramatically expand the pool of cryptocurrency investors. Many of E*Trade’s customers were seasoned traditional investors who had previously lacked a trusted, familiar pathway into digital assets. By offering crypto alongside stocks and bonds, E*Trade would effectively be telling its customer base that cryptocurrencies belonged in a diversified portfolio.

This was a fundamentally different proposition from using a standalone crypto exchange. Investors who already had retirement accounts, taxable brokerage accounts, and trading tools within E*Trade’s ecosystem could hypothetically add Bitcoin or Ethereum to their existing strategies without opening new accounts or learning new interfaces.

Why This Matters

E*Trade’s reported move into cryptocurrency trading in April 2019 was a watershed moment in the ongoing integration of digital assets into traditional finance. While the platform had not yet officially confirmed the plans, the Bloomberg report citing unnamed sources was credible enough to move markets and capture headlines across financial media. Combined with Bitcoin’s golden cross formation and TD Ameritrade’s own crypto experiments, the episode demonstrated that the 2018 crypto winter had given way to a new phase — one where mainstream financial institutions were no longer asking whether crypto was viable, but rather how quickly they could offer it to their customers.

Disclaimer: This article was written for BitcoinsNews.com and reflects the news and market conditions as reported on April 28, 2019. Cryptocurrency investments carry significant risk. Past performance is not indicative of future results. Always conduct your own research before making investment decisions.