Key Takeaways:
eToro filed for an IPO to list its shares on Nasdaq, marking a major step in its growth. The company’s earnings surged due to increased crypto trading activity, but future performance remains uncertain. Regulatory challenges in the U.S. have shaped eToro’s operations, limiting its crypto offerings for American users.On March 24, eToro announced that it had submitted a registration statement on Form F-1 to the U.S. Securities and Exchange Commission (SEC) in preparation for an initial public offering (IPO) of its Class A common shares.
The trading platform, founded in 2007, plans to list its shares on the Nasdaq Global Select Market under the ticker symbol “ETOR.”
Details of eToro Nasdaq IPO Filing and Financial Performance
According to the filing, the IPO, which could take place as early as Q2 2025, is expected to value the Israel-based company at over $5 billion.
eToro’s previous attempt to go public in 2021 via a $10.4 billion SPAC merger fell through in 2022.
However, the company raised $250 million in a 2023 funding round, securing a valuation of $3.5 billion from investors including ION Group, SoftBank Vision Fund II, and Velvet Sea Ventures.
According to its filing, eToro reported a massive jump in revenue, generating $12.6 billion in 2024 compared to just $3.89 billion in 2023.
Net income also saw a steep rise from $15.3 million in 2023 to $192 million in 2024, highlighting the company’s rapid growth amid a bullish crypto market.
Despite the detailed financials, eToro has not yet disclosed the number of shares it plans to offer or the expected IPO price.
Those details will emerge in a future filing once the company finalizes its launch plans.
Goldman Sachs, Jefferies, UBS, and Citigroup are leading the IPO, and both the company and existing shareholders will sell shares as part of the offering.
eToro’s Heavy Reliance on Crypto Markets
The filing highlights that 96% of eToro’s revenue in 2024 came from cryptocurrency trading.
The market’s bullish performance last year, partly fueled by U.S. President Donald Trump’s pro-crypto policies, contributed to eToro’s surge in user demand.
However, eToro did not include any financial projections for 2025, leaving investors to assess whether the company’s crypto-driven momentum will persist.
Given the volatile nature of the crypto market, sustained revenue growth remains uncertain.
eToro Regulatory Challenges in the U.S Amid Crypto Offerings Expansion
eToro has encountered regulatory hurdles, particularly in the U.S.
In September 2024, eToro USA LLC agreed to pay a $1.5 million fine and restrict crypto offerings to U.S. customers as part of a settlement with the SEC.
The regulator alleged that eToro had operated as an unregistered broker and clearing agency since 2020.
As part of the settlement, eToro now only allows U.S. customers to trade Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH), assets that are widely considered non-securities under current U.S. regulations.
eToro has maintained its strong presence in the crypto space, offering over 70 digital assets on its platform since first introducing Bitcoin trading in 2013.
In April 2024, the company partnered with 21Shares, a leading issuer of crypto exchange-traded products (ETPs), to launch an AI and data-driven crypto portfolio for retail investors.
The portfolio adapts to market trends by analyzing investor sentiment and monthly flows into European crypto ETPs.
Frequently Asked Questions (FAQs)
eToro is a global online trading platform founded in 2007 that enables users to invest in various financial instruments, including stocks, cryptocurrencies, commodities, and more. It also offers social trading features, which allow users to replicate the trades of experienced investors.
By filing for an IPO, eToro aims to raise capital to support its growth initiatives, enhance its platform, and expand its market presence. Going public also increases transparency and can elevate the company’s profile in the financial industry.
An Initial Public Offering (IPO) allows a private company to become publicly traded by offering shares to investors. The process involves regulatory filings, investor roadshows, pricing decisions, and, eventually, listing on a stock exchange.
A Special Purpose Acquisition Company (SPAC) merger is an alternative method in which a publicly traded shell company acquires a private firm, bypassing the traditional IPO process. eToro previously attempted to go public via a SPAC merger in 2021 but failed, demonstrating the complexities involved.
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