What Happened?
The trading platform eToro officially listed on Nasdaq, with its stock price soaring to $67 on the first day of trading, bringing its market value to approximately $5.4 billion and raising nearly $310 million, with support from asset management company BlackRock.
In 2024, eToro’s revenue from crypto assets reached $1.24 billion, nearly tripling year-on-year, with net profit surging 13 times, and the crypto business accounting for a quarter of total trading contributions.
Despite being constrained by U.S. regulations, eToro continues to expand in the European market, offering staking and social investment features, emphasizing a vision of transparency, inclusivity, and decentralization in crypto.
eToro Lands on Nasdaq, Market Value Surges to Approximately $5.4 Billion
The platform, primarily focused on stock and cryptocurrency trading, officially debuted on Nasdaq, with its stock price skyrocketing by 29% on the first day to close at around $67 per share, elevating its market value to approximately $5.4 billion, reflecting the market’s high expectations for eToro’s growth potential.
Founded in 2007, the company is not only a competitor to traditional retail brokers but has also actively positioned itself in the crypto asset sector over the past few years, gradually transforming from a stock trading platform into a fintech company encompassing diverse assets.
According to foreign media reports, eToro raised nearly $310 million through its IPO (Initial Public Offering), issuing 6 million shares priced at $52 each. Additionally, the world’s largest asset management company, BlackRock, expressed its intention to purchase $100 million worth of shares, indicating mainstream financial institutions’ confidence in eToro.
In fact, this is not eToro’s first attempt to go public. Back in 2022, the company planned to list through a merger with a Special Purpose Acquisition Company (SPAC), with a valuation exceeding $10 billion at that time. However, the plan ultimately fell through due to a bear market, rising interest rates, and a declining stock market.
Nevertheless, eToro’s CEO Yoni Assia stated in an interview with CNBC last year that the company had never given up on the idea of going public but was waiting for the “right time,” and continued to build partnerships with exchanges, including Nasdaq.
Explosive Growth in Crypto Asset Business
A significant part of eToro’s remarkable growth momentum is related to the development of its cryptocurrency business. According to the company’s prospectus submitted to the U.S. Securities and Exchange Commission (SEC), eToro’s revenue from crypto assets reached $1.24 billion in 2024, a substantial increase from $340 million in 2023, nearly tripling year-on-year. Its net profit surged from $15.3 million in the previous year to $192 million, representing a growth of nearly 13 times.
Currently, about a quarter of the platform’s net trading contributions come from its crypto business, up from 10% the previous year. Additionally, the company holds over $113 million worth of crypto assets.
eToro once supported U.S. users in trading over 70 types of crypto assets. However, after reaching a $1.5 million settlement agreement with the SEC, eToro now only offers Bitcoin, Ethereum, and Bitcoin Cash in the U.S. market. This move has had a “minimal” impact on the company’s overall operations, as eToro’s main market remains concentrated in Europe and other non-U.S. regions.
Assia wrote in an open letter: “Crypto is a revolutionary technology with the potential to decentralize and democratize the global financial system. The core values of transparency, security, and inclusivity behind it are highly aligned with our mission.”
Currently, eToro not only allows users to trade cryptocurrencies but also provides staking services, allowing users to participate in validation mechanisms through locking assets and earning rewards. In addition, eToro has launched a “social investing” feature, enabling users to track other investors’ portfolios while enhancing their own strategic capabilities.
Since Trump’s return to the White House earlier this year, investors’ attitudes toward risk assets have noticeably shifted to optimism. Now, with the SEC easing its crackdown, some cases being dismissed, and an improved market atmosphere, eToro’s listing is seen as a milestone marking a new phase for the crypto industry.
Source: Decrypt, CNBC