Crypto Boom Fuels eToro's $4.5 Billion IPO Bid on Nasdaq

Online trading platform eToro has officially filed for an initial public offering (IPO) on the Nasdaq, aiming for a valuation of approximately $4.5 billion after a year of explosive revenue growth largely driven by the surge in cryptocurrency trading, Reuters reported on Tuesday.

The company, which allows users to trade stocks, crypto, and other assets, is looking to raise between $300 million and $400 million in the offering, marking a renewed push to go public after a previous attempt was shelved in 2021.

According to a prospectus filed with the SEC, eToro reported a revenue of $12.6 billion in 2024, more than tripling its 2023 figure of $3.4 billion. Notably, a remarkable 96% of this revenue, amounting to $12.1 billion, was attributed to cryptocurrency trading activity.

The company also reported a substantial jump in net income, reaching $192 million in 2024, a significant increase from the $15.3 million reported in the previous year.

It's worth noting that eToro recently settled charges with the U.S. Securities and Exchange Commission (SEC) for $1.5 million . The SEC alleged that eToro failed to register as a broker while operating its U.S. crypto trading platform. As part of the settlement, eToro agreed that U.S. customers would only be able to trade Bitcoin, Bitcoin Cash, and Ether on the platform. SEC Enforcement Division Director Gurbir S. Grewal stated that this resolution "not only enhances investor protection but also offers a pathway for other crypto intermediaries." According to the SEC, eToro had approximately 240,000 U.S. customers with funded accounts as of December 2023.

Founded in 2007 by Yoni and Ronen Assia, eToro has gained popularity for its user-friendly platform that allows individuals to invest in a variety of assets and even copy the trading strategies of top-performing investors.

This IPO attempt follows a previously planned merger with a special-purpose acquisition company (SPAC) in 2021, which sought a much higher valuation of $10.4 billion but was ultimately terminated due to unfavorable market conditions. The company has filed to list its shares under the ticker symbol "ETOR."

Reuters reported that eToro's total commissions surged by 46% to $931 million in 2024, compared to $639 million in the previous year, further highlighting the platform's robust growth. The resurgence in retail trading in 2024, fueled by record-high equity markets and renewed risk appetite, coupled with enthusiasm for both stocks and cryptocurrencies, has significantly benefited online brokerage firms like eToro.

Prior to this IPO filing, eToro raised $250 million in a funding round in March 2023, which valued the company at $3.5 billion. The upcoming IPO is being led by a consortium of major underwriters, including Goldman Sachs, Jefferies, UBS, and Citigroup.