eToro, a platform offering stock and cryptocurrency trading services to individual investors, plans to go public on the New York Stock Exchange. According to a report by the Financial Times, based on documents obtained from the U.S. Securities and Exchange Commission, the listing may occur in the second quarter and could value the company at over $5 billion.
Potential Impacts of the IPO
If successful, eToro will join a select group of publicly traded companies in the U.S. that provide cryptocurrency trading services, alongside Coinbase and Robinhood. However, eToro will be significantly smaller, with Coinbase’s market valuation at $69 billion and Robinhood’s at $40 billion.
In 2021, eToro had aimed to go public through a SPAC merger valued at $10.4 billion, but this attempt was abandoned by the end of 2022 due to unfavorable market conditions. In 2023, the company secured $250 million in funding from investors, including SoftBank, bringing its valuation down to $3.5 billion. Nonetheless, its valuation increased following a rally in the stock and cryptocurrency markets.
Customer and Asset Management
Founded in 2007 in Israel, eToro manages $11.3 billion in assets for over 3 million customers. These assets encompass not only cryptocurrencies but also stocks and exchange-traded funds. Under an agreement with the SEC in 2022, eToro agreed to cease listing certain cryptocurrencies in the U.S., allowing users to trade only Bitcoin 
$102,022, Bitcoin Cash, and Ether.
While the exact trading volume of the company’s cryptocurrencies is unknown, a report by Finance Magnates indicated that trading volume increased by over 500% until November 2022. eToro’s public offering reflects its adaptation to market conditions and growth strategies, with the potential to strengthen its position in the U.S. market.
