eToro’s IPO Aspirations
eToro is making strides towards going public by confidentially filing its IPO with the Securities and Exchange Commission (SEC), as reported by the Financial Times. The company is receiving backing from top-notch financial institutions such as Goldman Sachs, Jefferies, and UBS.
Based in Israel, this fintech innovator is eyeing a valuation of around $5 billion, with aspirations to debut on the New York Stock Exchange by the second quarter of 2025. This strategic move aims to attract a broader spectrum of investors, even though eToro’s roots lie primarily in the UK market.
Previous IPO Attempts and Recent Gains
This latest filing marks a renewed attempt for eToro to enter the public market after a previous failed effort in 2021 when it sought to merge with a special purpose acquisition company (SPAC) valued at $10.4 billion. That merger didn’t materialize, largely due to tough market conditions. Earlier this year, eToro was exploring other avenues to pursue its public offering.
Recent financial gains have strengthened eToro’s bid for an IPO. The company, which experienced losses in 2022, celebrated a revenue boom of $630 million in 2023 and expects to further enhance its profitability in the upcoming year.
Expansion and Industry Context
As a platform that enables trading in stocks, exchange-traded funds (ETFs), and digital assets, eToro has attracted over 30 million users in 140 countries. However, in September 2024, it halted trading on most cryptocurrencies following a settlement with the SEC over federal securities law violations.
In addition to trading services, eToro is expanding its offerings. The company is gearing up to launch ETF and mutual fund products, and it plans to introduce pension services as well. Recently, it acquired Spaceship, an Australian pension management app, and forged a partnership with a UK pension fund.
The timing of eToro’s IPO filing aligns with a renewed interest in cryptocurrency assets, particularly since Paul Atkins was appointed to lead the SEC. Atkins has gained a reputation for fostering a pro-crypto and innovative environment.
Ark Invest has suggested that policies from former President Trump may create a supportive climate for the cryptocurrency sector, benefiting companies like Circle and Kraken, both of which are also pursuing public listings.
Circle, recognized for its USD Coin stablecoin, has already confidentially filed for an IPO. Meanwhile, Kraken is preparing for its public debut after successfully raising $100 million in a pre-IPO funding round.
Source: Cryptobriefing
