eToro, the Israel-based trading platform known for enabling retail investors to trade cryptocurrencies and stocks, is preparing to go public on the New York Stock Exchange (NYSE) through an Initial Public Offering (IPO), according to a report from Financial Times. The company is seeking a valuation of $5 billion, with the potential listing expected as early as the second quarter of 2025.
The trading platform has enlisted financial giants Goldman Sachs, Jefferies, and UBS as advisers for the upcoming IPO. If successful, eToro would join Coinbase (COIN) and Robinhood (HOOD) as one of the few publicly listed companies in the U.S. offering crypto trading. However, eToro would be significantly smaller in size than these firms, with Coinbase currently valued at $69 billion and Robinhood at $40 billion.
The $5 billion valuation is a significant drop from the company’s earlier target of $10.4 billion, which it aimed for in 2021 when it planned to go public via a SPAC (Special Purpose Acquisition Company) merger. This SPAC deal was ultimately abandoned in late 2022 due to unfavorable market conditions.
In 2023, eToro secured $250 million in funding, bringing its valuation to $3.5 billion. Since then, the company’s valuation has risen, largely due to the revival of the cryptocurrency and equity markets. However, eToro also reached a settlement with the U.S. Securities and Exchange Commission (SEC) for $1.5 million to resolve charges related to operating as an unregistered broker-dealer and clearing agency. The company had also facilitated trading in some crypto assets classified as securities by the SEC.
eToro has not publicly disclosed its exact cryptocurrency trading volume but was reported by Finance Magnates to have seen a significant surge of over 500% in crypto trading volume through November 2023.
Founded in 2007, eToro now manages assets worth $11.3 billion for more than 3 million customers. Its offerings include not just cryptocurrencies but also stocks and exchange-traded funds (ETFs). Following the SEC settlement, eToro limited its U.S. offerings to just Bitcoin (BTC), Bitcoin Cash (BCH), and Ether (ETH).
eToro has not provided further details regarding the IPO, but it’s expected to be a major move in the growing cryptocurrency trading industry.
