That would rely on whether you're trading them as actual cryptocurrency assets or through a contract for difference (CFD).
When engaging in Bitcoin, Ethereum, or any other available cryptocurrency trading on their platform as real assets, eToro will purchase these tokens on your behalf and hold them in a segregated account under your name. Suppose you choose to close a position. At that juncture, eToro will sell these specific tokens, and the resulting profit or loss from closing the position will be reflected as actual money in your account.
It's crucial to bear in mind the following:
If your account is with eToro AUS Capital Pty Ltd, you can only trade Bitcoin and other cryptocurrencies as CFDs due to regulatory compliance. Clients are not permitted to trade actual cryptocurrency assets. You will notice a "CFD" designation on the trading window to indicate that it's not a real cryptocurrency asset.
If your account is with eToro (Europe) Ltd, your Buy crypto trades involve actual tokens, while Sell crypto trades are executed as CFDs.
If your account is with eToro (UK) Ltd or eToro (Europe) Ltd, but you're a UK resident, your Buy crypto trades involve actual tokens. However, selling crypto trades are not allowed according to the regulatory guidelines of the FCA (Financial Conduct Authority) regarding the sale of derivatives.