eToro IPO: Trading Platform Aims for $4 Billion Valuation in US Public Offering

TLDR

Table of Contents

eToro targets $4 billion valuation with US IPO on Nasdaq under ticker “ETOR”
Company and existing shareholders seek to raise $500 million by offering 10 million shares priced between $46-$50
BlackRock has indicated interest in purchasing up to $100 million worth of shares
Crypto trading accounted for $12.1 billion in revenue for 2024, up from $3.4 billion in 2023
The IPO was delayed after market turbulence following President Trump’s tariff announcements

Israel-based trading platform eToro is moving forward with plans to go public on the Nasdaq, targeting a valuation of up to $4 billion. The company, which offers stock and cryptocurrency trading services primarily aimed at retail investors, filed with the US Securities and Exchange Commission on May 5.

eToro and its existing stockholders plan to raise $500 million through the initial public offering. They will offer a total of 10 million shares priced between $46 and $50 each.

The company itself is offering 5 million shares. The other 5 million shares are being put up by existing stockholders, including co-founder and CEO Yoni Assia, his brother and executive director Ronen Assia, and venture firms such as Spark Capital, BRM Group, and Andalusian Private Capital.

BlackRock funds have shown interest in the IPO. The asset manager has indicated its intention to purchase up to $100 million worth of shares in the offering.

Growth in Crypto Trading

eToro reported strong growth in its cryptocurrency business. The company’s revenue from crypto reached $12.1 billion in 2024, a major increase from $3.4 billion in 2023.

eToro filed an updated IPO prospectus seeking to raise $500M at a $4B valuation $ETOR.
>Mentions crypto 630 times
>Crypto trading is 38% of transaction revenue
>$ETOR held $113M in digital assets (likely BTC) as of year-end 2024
>Net income of $192M, so ~21x PE. pic.twitter.com/o0vt83pqYz
— matthew sigel, recovering CFA (@matthew_sigel) May 5, 2025

However, the company expects crypto to make up a smaller portion of its trading commission in the near future. Crypto is projected to account for 37% of trading commission in the first quarter of 2025, down from 43% in the same quarter a year earlier.

In its SEC filing, eToro highlighted several risks related to its cryptocurrency business. The company warned that users might leave or it could struggle to attract new customers due to negative perceptions of cryptocurrencies “either as a result of media coverage or by experiencing major losses.”

The trading platform also flagged regulatory challenges. It mentioned that US state-level crypto regulation “may place strain on our resources and make it difficult to operate in certain jurisdictions, if at all.”
eToro also expects “to continue to incur heavy costs” due to the European Union’s Markets in Crypto-Assets (MiCA) laws “on an ongoing basis.”

IPO Journey and Market Timing

The path to going public has not been straight for eToro. The company made confidential filings with the SEC in January for a public offering, before publicly announcing the plans on March 24.

Reports indicate that eToro delayed its IPO after President Donald Trump’s April 2 “Liberation Day” tariff announcements caused global markets to drop and halted many planned public offerings.

This isn’t eToro’s first attempt to go public. The company had previously tried to enter public markets through a merger with a special purpose acquisition company (SPAC) at a $10.4 billion valuation. Those plans fell apart in 2022.

In 2023, eToro raised $250 million in a funding round that valued the company at $3.5 billion, less than the current target valuation for its IPO.

The company will compete with other retail trading platforms like Robinhood Markets Inc. (HOOD), which has seen its shares climb by nearly 30% so far this year despite a dip in crypto trading during the first quarter.

Several crypto companies are also preparing to go public. Stablecoin issuer Circle filed on April 1 but paused its plans due to market uncertainty. Crypto exchange Kraken is reportedly considering a public offering for early next year, a plan that has been accelerated following Trump’s election.

eToro plans to list on the tech-heavy Nasdaq Global Select Market under the ticker symbol “ETOR.” The IPO is being led by Goldman Sachs, Jefferies, UBS Investment Bank, and Citigroup.

Founded in 2007, eToro’s trading platform allows users to invest in stocks and certain cryptocurrencies. In September, the company agreed to limit its US crypto offerings to bitcoin, bitcoin cash, and ether as part of a settlement with the SEC on charges it operated as an unregistered broker and clearing agency.

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