- eToro priced its IPO higher than expected and opened trading on Nasdaq under the ticker ETOR.
- The company raised $620 million and reached a $4.2 billion value after strong investor demand.
- eToro limited its crypto assets in the US to settle with regulators and ensure compliance.
Following stronger-than-expected demand, cryptocurrency and stock trading platform eToro debuted on the Nasdaq today, pricing its IPO at $52 per share. It raised $620 million through the sale of 11.92 million shares. The offer exceeded its projected range of $46 to $50, with shares listed under the ticker “ETOR” starting May 14. The IPO gives eToro a valuation of approximately $4.2 billion.
From SPAC Failure to Market Success
eToro previously attempted to go public in 2022 via a SPAC merger backed by financier Betsy Cohen, at a valuation of $10.4 billion. However, the plan fell through. This IPO marks the firm’s first successful public listing. Founded in 2007 in Israel, eToro now joins a limited group of U.S.-listed crypto-related companies, such as Coinbase and several bitcoin mining firms.
Besides that, the company’s return to the IPO stage was not without its challenges. According to sources, eToro filed for its IPO in March but delayed the process due to uncertainties triggered by tariff announcements under President Donald Trump. The hesitation affected other major firms, including Klarna and StubHub, suggesting broader market sensitivity.
Additionally, the trading platform faced scrutiny from U.S. regulators. In September, eToro resolved SEC allegations of operating as an unregistered broker and clearing agency by restricting its crypto offerings. Currently, the firm offers only bitcoin, bitcoin cash, and ether to U.S. clients.
Surging Financial Performance attracts Investors
eToro’s robust financial results appear to have bolstered investor confidence leading up to the IPO. The firm reported net income of $192.4 million in 2024, a sharp increase from $15.3 million in 2023. Revenue also saw notable growth, rising to $12.6 billion in 2024 from $3.89 billion the previous year.
Moreover, the platform expanded its global user base. By the end of 2024, eToro reported 3.5 million funded accounts across 75 countries. This growth underlines eToro’s increasing relevance in the global fintech and cryptocurrency markets.
Related: Gemini Plans IPO with Goldman Sachs, Citigroup Support
Impact on Fintech and Crypto Markets
The IPO of eToro could turn out to be a bellwether for the ailing IPO market, in particular for fintech and crypto ventures. Its successful public debut may encourage other companies to revive their delayed IPO plans. The stablecoin issuer Circle and the Hong Kong-based Animoca Brands have already planned their listing this year.
eToro’s listing can add a certain level of legitimacy to the crypto market. Presence in the public market is usually a magnet to institutional investors with higher credibility and sources of funds. Because the firm enters the lists of other crypto-related public companies, its performance may impact overall sentiment in relation to the investments in digital assets. Moreover, a good IPO shows investor appetite for platforms connecting traditional finance and digital assets.
