Recent reports indicate the company has partnered with Goldman Sachs to oversee the IPO process, aiming for a public debut as early as Q2 2025, though the timeline remains tentative.
The IPO plans reflect eToro’s strategy to capitalize on favorable market conditions, including record-high Bitcoin prices and increasing retail interest in cryptocurrency trading
Key Highlights:
- Timeline and Valuation:
eToro is targeting a valuation above $3.5 billion, the figure achieved in its 2023 private funding round. However, private market trading has valued the company closer to $1.7 billion. This discrepancy raises questions about the final valuation it will seek in the public market. - Previous IPO Attempts:
eToro previously attempted to go public in 2021 via a SPAC merger with Fintech Acquisition Corp V at an initial valuation of $10 billion. The deal was later adjusted to $8–$9 billion but collapsed in 2022 due to challenges in securing private investment. - Market Context:
The IPO coincides with Bitcoin’s surge past $100,000, driven by crypto-friendly policies from President-elect Donald Trump and rising enthusiasm for crypto trading globally. Strong performances by rivals like Robinhood, Plus500, XTB, and Swissquote have further validated the timing.
eToro’s Growth and Strategic Moves
Founded in 2007, eToro offers a platform for trading stocks, cryptocurrencies, and other assets while enabling users to follow top-performing investors. The platform boasts over 38 million registered users across 75 countries.
- US Expansion:
eToro has aggressively expanded into the US market, launching nationwide services in November. US users can now trade fractional stocks, ETFs, and options. However, the company recently agreed to pay $1.5 million in fines to the SEC for operating as an unregistered broker and clearing agency. As part of the settlement, eToro has restricted certain crypto offerings to US clients. - Crypto Focus:
eToro’s fortunes have been closely tied to the crypto market. The recent surge in Bitcoin prices and the overall enthusiasm for cryptocurrencies have created a promising environment for the company’s IPO plans.
What’s Next?
The IPO’s success will likely hinge on eToro’s ability to position itself as a leader in social and crypto trading while addressing past regulatory challenges. The company’s partnership with Goldman Sachs underscores the seriousness of its efforts to attract investors and secure a strong debut in the public market.
With the broader retail trading sector thriving, eToro’s IPO could set the stage for a new wave of crypto-related public offerings, solidifying its position as a global leader in social trading and fintech innovation.