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eToro moves forward with plans for US IPO

Monday 9 December 2024 09:34 CET | News

Israel-based social trading-focused online broker eToro has decided to move forward with its plans for a US initial public offering (IPO).

 

According to Bloomberg, the company has enlisted investment banking firm Goldman Sachs to oversee the process, though final details have yet to be confirmed. Reports suggest eToro could go public as early as the second quarter of 2025, though the timeline remains uncertain. The company is expected to aim for a valuation above USD 3.5 billion, a figure it reached during a private funding round in March 2023. However, subsequent reports from sources in Israel indicated that eToro's shares have traded privately at a valuation closer to USD 1.7 billion, highlighting a significant discrepancy. 

eToro previously attempted to go public in 2021 through a SPAC merger with Fintech Acquisition Corp V, led by Betsy Cohen. The deal initially valued eToro at USD 10 billion but was later revised to USD 8–9 billion in an effort to secure additional private investment. The merger ultimately fell through in July 2022.

 

Israel-based online broker eToro, known for its focus on social trading, is reportedly moving forward with plans for a US initial public offering (IPO).

 

Market context and strategic considerations 

The timing of the IPO could reflect eToro’s effort to capitalise on favourable market conditions. Retail interest in cryptocurrency has surged following Bitcoin surpassing the USD 100,000 mark for the first time, alongside broader enthusiasm for crypto trading after recent political developments in the US.  

Additionally, eToro may be encouraged by the strong performance of competitors such as Robinhood in the US market and European-listed brokers such as Plus500, XTB, and Swissquote, which have seen multi-year highs in their share prices. 

eToro has been expanding its presence in the US, launching services nationwide in November after entering the New York market. US users can now trade fractional stocks, exchange-traded funds (ETFs), and options on the platform. However, the company recently settled charges with the SEC over its crypto offerings, agreeing to pay USD 1.5 million in fines and to limit certain services for US retail clients.


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Keywords: cryptocurrency, IPO, digital assets, partnership
Categories: Banking & Fintech
Companies: eToro
Countries: Israel
This article is part of category

Banking & Fintech

eToro

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