In my opinion what will make them different from eToro is their 364M users, of course not everybody is interested in crypto at the moment but it's a huge pool of clients with downloaded PayPal apps already
Since PayPal just announced that crypto trading and payment services went live in the US, do you think PayPal may turn into a big competitor to existing cryptoexchages? They can also launch a crypto-currency trading desk as well, why not.
I don't see PayPal serious enough about the cryptocurrency market to turn into some sort of centralised exchange. The reason for this is that in my opinion Paypal added the ability of its customers to buy/sell crypto only as a "face" and to ensure that if crypto does end up handicapping the finance industry (which I think at some point in the future is inevitable) they will have a stand in it and won't be missing out.
Even if they were to adopt something like that in the future it won't make it any different from a centralised exchange like eToro, and definitely not close enough to DEX.