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 the company as one of
the few publicly traded companies offering crypto trading in the US,
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.
Finance Magnates contacted eToro for a comment about the IPO, and a representative from the company said: “We are not commenting on IPO rumors.” 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.
“By removing tokens offered as investment contracts from its
platform, eToro has chosen to come into compliance and operate within our
established regulatory framework,” Gurbir Grewal, the then Director of the SEC’s
Division of Enforcement, commented while announcing the settlement last year.
“This resolution not only enhances investor protection but
also offers a pathway for other crypto intermediaries.”
Competing in the Public Market
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.
eToro ambitions to go public gathered momentum last year when The company offers users the
ability to trade cryptocurrencies, stocks, and ETFs. With over 3 million
customers managing $11.3 billion in assets, it caters to retail
investors globally, although it faces regulatory hurdles in the U.S.
Expect ongoing updates as this story evolves.
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 the company as one of
the few publicly traded companies offering crypto trading in the US,
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.
Finance Magnates contacted eToro for a comment about the IPO, and a representative from the company said: “We are not commenting on IPO rumors.” 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.
“By removing tokens offered as investment contracts from its
platform, eToro has chosen to come into compliance and operate within our
established regulatory framework,” Gurbir Grewal, the then Director of the SEC’s
Division of Enforcement, commented while announcing the settlement last year.
“This resolution not only enhances investor protection but
also offers a pathway for other crypto intermediaries.”
Competing in the Public Market
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.
eToro ambitions to go public gathered momentum last year when The company offers users the
ability to trade cryptocurrencies, stocks, and ETFs. With over 3 million
customers managing $11.3 billion in assets, it caters to retail
investors globally, although it faces regulatory hurdles in the U.S.
Expect ongoing updates as this story evolves.
This post is originally published on FINANCEMAGNATES.
