According to the Financial Times, eToro has confidentially filed for a U.S. IPO, targeting a valuation above $5 billion. If successful, it will join Coinbase and Robinhood as one of the few publicly traded platforms offering cryptocurrency trading.
A second shot at going public
eToro’s earlier attempt to go public via a $10.4 billion SPAC deal in 2021 fell through due to market challenges. By 2023, the company raised $250 million at a $3.5 billion valuation, buoyed by improving equity and crypto markets.
When asked for comment, eToro declined, stating: “We are not commenting on IPO rumors.”
Learn how to trade currency pairs, stocks, Crypto, and CFDs on popular assets with Top Forex broker eToro
Regulatory challenges and compliance
In 2024, eToro settled with the SEC, paying $1.5 million in fines and restricting U.S. users to a limited range of cryptocurrencies, including Bitcoin and Ether. Gurbir Grewal, then SEC Enforcement Director, highlighted that eToro’s compliance steps could serve as a model for other crypto firms.
Competing in a crowded market
If listed, eToro will compete with giants like Coinbase and Robinhood. However, its diverse asset offerings and social investment features may attract retail investors.
Interest in crypto surged recently, with eToro seeing renewed activity from returning traders, signaling a maturation of the market, according to UK Managing Director Daniel Moczulski.
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