TLDR
- eToro raised $620 million in its IPO, pricing shares at $52 each, above the marketed range of $46-$50
- The Israel-based platform will trade on Nasdaq under ticker symbol ETOR starting May 14
- eToro competes with Robinhood and has been expanding its crypto business, with crypto contributing 25% of net trading revenue in 2023
- The company’s net income increased nearly thirteenfold to $192.4 million in 2023
- This IPO follows a failed 2022 attempt to go public through a SPAC merger that would have valued eToro at over $10 billion
eToro, the Israel-based crypto and stock trading platform, has successfully raised $620 million in its initial public offering after pricing its shares at $52 each, exceeding its initial target of $500 million. The company sold 11.92 million shares in total, with approximately half coming from eToro itself and half from existing shareholders.
The shares are set to begin trading on the Nasdaq Global Select Market on May 14 under the ticker symbol ETOR. The offering will remain open until at least May 15, giving investors additional time to participate.
This IPO represents a major milestone for eToro, which was founded in 2007 by brothers Yoni and Ronen Assia along with David Ring. The company has established itself as a competitor to Robinhood Markets Inc., which went public in July 2021.
Robinhood’s stock has performed well recently, climbing over 67% year to date and closing at $62 per share on May 13. This strong performance may have created a favorable environment for eToro’s market debut.
From Crypto to Mainstream
eToro has been steadily expanding its crypto operations. Revenue from cryptoassets more than tripled to over $12 million in 2024. Crypto now represents one-quarter of the company’s net trading contribution, up from just 10% the previous year.
The company generates revenue through various trading-related fees, including spreads on buy and sell orders. It also collects fees from non-trading activities such as withdrawals and currency conversion.
eToro’s financial performance has been impressive. Net income jumped almost thirteenfold last year to $192.4 million from $15.3 million a year earlier, demonstrating strong growth that likely appealed to IPO investors.
BlackRock, the world’s largest asset manager, expressed interest in purchasing $100 million worth of shares at the IPO price, according to eToro’s prospectus. This vote of confidence from a major financial institution may have helped boost investor interest.
This isn’t eToro’s first attempt to go public. In 2022, the company scrapped plans to enter the market through a merger with a special purpose acquisition company (SPAC). That deal would have valued eToro at more than $10 billion, considerably higher than the current IPO valuation of approximately $4.2 billion.
eToro’s public filing process began in January with confidential filings to the SEC, followed by a public announcement of its plans on March 24. The company temporarily shelved these plans due to market uncertainty caused by President Trump’s tariff announcements on April 2, which disrupted many in-process public offerings.
The successful pricing of eToro’s IPO may signal that the public market is ready to take on more risk, potentially opening the door for other companies waiting to go public.
Several other crypto and fintech companies are considering public offerings. Digital banking firm Chime has applied to list on the Nasdaq under the ticker symbol CHY, with Renaissance Capital speculating the IPO could raise up to $1 billion.
Crypto exchange Kraken is reportedly considering a public offering this year. Stablecoin issuer Circle filed with the SEC on April 1 but paused its plans after market turbulence. Crypto custody services firm BitGo is also reportedly preparing for an IPO later this year.
In 2021, Coinbase became the first major crypto firm to go public in the US, listing its shares on the Nasdaq. Industry experts predict that several more crypto unicorns will follow suit in 2025.
eToro’s successful IPO represents an important test for the public markets’ appetite for new offerings, particularly in the crypto and fintech sectors.
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