eToro Group, the Israel-based stock and cryptocurrency trading platform, is setting its sights on a substantial valuation of up to $4 billion in its forthcoming initial public offering (IPO) in the United States. As the company prepares for its listing on the Nasdaq, it is targeting to raise approximately $500 million through an offering of 10 million shares, with prices expected to be set between $46 to $50 each.
In their recent filing with the U.S. Securities and Exchange Commission, eToro revealed that it plans to offer 5 million shares, while the remaining 5 million shares will be provided by notable existing shareholders, including co-founder and CEO Yoni Assia, his brother Ronen Assia, and multiple venture firms such as Spark Capital, BRM Group, and Andalusian Private Capital.
eToro’s operational model focuses on retail trading of stocks and cryptocurrencies and will trade under the ticker symbol “ETOR” on the tech-heavy Nasdaq Global Select Market. This positions eToro in direct competition with established platforms like Robinhood Markets Inc., which recently experienced a dip in cryptocurrency trading yet saw shares rise by nearly 30% year-to-date.
Notably, interest from significant investment firms has emerged, with BlackRock funds expressing a potential desire to purchase up to $100 million worth of shares during the IPO. The company also intends to allocate 500,000 shares for a directed share program, typically aimed at employees.
In 2024, eToro reported an impressive revenue from cryptocurrency transactions amounting to $12.1 billion, a sharp increase from $3.4 billion in 2023. Looking ahead, the company anticipates that crypto will constitute around 37% of its trading commission in the first quarter of 2025, reflecting a slight decline from 43% in the previous year.
Despite these promising developments, eToro is keenly aware of the risks associated with its business. In its filing, the company highlighted concerns about potential user attrition, which may arise from negative media portrayals of cryptocurrencies or significant losses experienced by users. Furthermore, eToro flagged challenges stemming from varying state-level regulations in the U.S. that could obstruct operations in certain jurisdictions.
Market Context and Future Outlook
In light of recent market volatility, particularly following President Donald Trump’s tariff announcements that affected global markets, eToro initially submitted confidential filings to the SEC in January before making its plans public on March 24. The company had briefly delayed its IPO in response to unfavorable market conditions.
The current landscape shows a burgeoning interest from other cryptocurrency firms looking to go public. For instance, stablecoin issuer Circle made a filing on April 1, though it has since paused those plans amidst prevailing uncertainties. Furthermore, crypto exchange Kraken is reportedly contemplating a public offering as early as next year, propelled by Trump’s electoral prospects.
eToro’s upcoming public offering is being driven by prominent financial institutions, including Goldman Sachs, Jefferies, UBS Investment Bank, and Citigroup, highlighting the significant interest in the intersection of financial technology and cryptocurrency.
