TLDR
- eToro aims for a $4 billion valuation with its US IPO on Nasdaq under ticker “ETOR”
- Company and shareholders seek to raise $500 million by offering 10 million shares priced between $46-$50
- BlackRock funds have indicated interest in purchasing up to $100 million in shares
- eToro reported crypto revenue of $12.1 billion in 2024, up from $3.4 billion in 2023
- The company previously delayed its IPO after market turbulence following Trump’s tariff announcements
eToro Group, the Israel-based stock and crypto trading platform, is moving forward with its plans to go public on the Nasdaq Global Select Market.
The company is targeting a valuation of up to $4 billion in its initial public offering.
The retail trading platform and existing stockholders aim to raise $500 million through the offering. They plan to sell a total of 10 million shares priced between $46 and $50 each.
eToro’s filing with the US Securities and Exchange Commission shows the company is offering 5 million shares. Another 5 million shares are being put up by existing shareholders. These include co-founder and CEO Yoni Assia, his brother and executive director Ronen Assia, and venture firms like Spark Capital, BRM Group, and Andalusian Private Capital.
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
The timing is worth noting. eToro had to delay its IPO plans after President Donald Trump’s April 2 tariff announcements disrupted global markets. The company initially made confidential filings with the SEC in January before publicly announcing its plans on March 24.
Stock markets have regained some stability in recent days. This has created a more favorable environment for companies looking to go public.
Company Profile and Performance
Founded in 2007, eToro offers a trading platform that allows users to invest in both stocks and cryptocurrencies. It primarily targets retail traders and will compete with platforms like Robinhood Markets once public.
The company has shown strong growth in its crypto business. eToro reported that its revenue from crypto in 2024 was $12.1 billion. This marks a major increase from $3.4 billion in 2023.
However, the company expects crypto to account for 37% of its commission from trading activity in the first quarter of 2025. This is down from 43% in the same quarter a year earlier.
eToro has also taken steps to comply with regulatory requirements. In September, the company agreed to limit its US crypto offerings to bitcoin, bitcoin cash, and ether. This was part of a settlement with the SEC on charges it operated as an unregistered broker and clearing agency.
Investment Support and Previous Efforts
There appears to be institutional backing for the IPO. According to the filing, certain BlackRock funds and accounts have indicated interest in buying up to $100 million worth of shares at the IPO price.
eToro has also set aside 500,000 shares to sell through a directed share program. These programs are typically targeted at employees.
This is not eToro’s first attempt to go public. The company had earlier looked to go public 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 round valued the company at $3.5 billion, which is slightly below the current target valuation for the IPO.
Regulatory Challenges
In its SEC filing, eToro highlighted several potential risks to its business. The company warned that users could leave or it might struggle to attract new users due to negative perceptions of cryptocurrencies.
eToro also flagged US state-level crypto regulation as a concern. The company stated this “may place strain on our resources and make it difficult to operate in certain jurisdictions, if at all.”
European regulations were mentioned as well. eToro said it expects “to continue to incur significant costs” due to the European Union’s Markets in Crypto-Assets (MiCA) laws “on an ongoing basis.”
The IPO is being led by major financial institutions including Goldman Sachs, Jefferies, UBS Investment Bank, and Citigroup. eToro will list on the Nasdaq under the symbol “ETOR.”
