After years of ups and downs, eToro has confidentially
filed for an initial public offering (IPO) with the U.S., targeting a valuation
of over $5 billion, the Financial Times reported. If successful, the move could position eToro as one of
the few publicly traded companies offering crypto trading in the U.S.,
alongside giants like Coinbase and Robinhood.
A Resilient Comeback
This isn’t eToro’s first attempt to go public. In
2021, the platform planned a $10.4 billion SPAC merger but abandoned the effort
due to challenging market conditions. Fast forward to 2023, eToro raised $250 million at a
$3.5 billion valuation, signaling a rebound fueled by rising equity and
cryptocurrency markets.
EToro, founded in Israel in 2007, offers users the
ability to trade cryptocurrencies, stocks, and ETFs. With over 3 million
customers managing $11.3 billion in assets, the platform caters to retail
investors globally, although it faces regulatory hurdles in the U.S.
Competing in the Public Market
In 2024, eToro reached a settlement with the SEC over
alleged violations of federal securities laws. The company paid $1.5 million in
penalties and restricted U.S. users to trading only a handful of
cryptocurrencies, including Bitcoin, Ether, and Bitcoin Cash.
This regulatory scrutiny has not deterred eToro from
pursuing a U.S. listing. If eToro succeeds, it will join other publicly traded
companies offering cryptocurrency trading.
However, it will face stiff competition from Coinbase and
Robinhood. Still, eToro’s focus on a diverse asset portfolio and its social
investment features could give it an edge in attracting retail traders.
With Goldman Sachs, Jefferies, and UBS advising on the
listing, the company is poised to make a strong bid for investor confidence. Asked
about the IPO, the company said: “We are not commenting on IPO rumors.”
After years of ups and downs, eToro has confidentially
filed for an initial public offering (IPO) with the U.S., targeting a valuation
of over $5 billion, the Financial Times reported. If successful, the move could position eToro as one of
the few publicly traded companies offering crypto trading in the U.S.,
alongside giants like Coinbase and Robinhood.
A Resilient Comeback
This isn’t eToro’s first attempt to go public. In
2021, the platform planned a $10.4 billion SPAC merger but abandoned the effort
due to challenging market conditions. Fast forward to 2023, eToro raised $250 million at a
$3.5 billion valuation, signaling a rebound fueled by rising equity and
cryptocurrency markets.
EToro, founded in Israel in 2007, offers users the
ability to trade cryptocurrencies, stocks, and ETFs. With over 3 million
customers managing $11.3 billion in assets, the platform caters to retail
investors globally, although it faces regulatory hurdles in the U.S.
Competing in the Public Market
In 2024, eToro reached a settlement with the SEC over
alleged violations of federal securities laws. The company paid $1.5 million in
penalties and restricted U.S. users to trading only a handful of
cryptocurrencies, including Bitcoin, Ether, and Bitcoin Cash.
This regulatory scrutiny has not deterred eToro from
pursuing a U.S. listing. If eToro succeeds, it will join other publicly traded
companies offering cryptocurrency trading.
However, it will face stiff competition from Coinbase and
Robinhood. Still, eToro’s focus on a diverse asset portfolio and its social
investment features could give it an edge in attracting retail traders.
With Goldman Sachs, Jefferies, and UBS advising on the
listing, the company is poised to make a strong bid for investor confidence. Asked
about the IPO, the company said: “We are not commenting on IPO rumors.”
This post is originally published on FINANCEMAGNATES.
