In a significant move for the cryptocurrency landscape, Israel-based eToro Group has set its sights on a valuation of up to $4 billion as it prepares to go public in the United States. Announcing an ambitious initial public offering (IPO) on the Nasdaq, the popular stock and crypto trading platform aims to raise $500 million by offering 10 million shares priced between $46 and $50 each. The news was unveiled on May 5, 2025, marking a pivotal moment for eToro as it seeks to expand its footprint in the competitive U.S. market.
Eyeing the Nasdaq: A Bold Move
eToro’s decision to list on the tech-heavy Nasdaq Global Select Market under the ticker “ETOR” is a strategic leap into the heart of the financial world. This IPO is not just about numbers; it’s a statement of intent. The company, which has been a trailblazer in democratizing both stock and crypto trading for retail investors, will face off against established players like Robinhood Markets Inc. (HOOD). Interestingly, Robinhood has witnessed a nearly 30% rise in its share price this year, despite a dip in crypto trading during the first quarter. The competition is heating up, as detailed in Robinhood beats Q1 estimates despite revenue, crypto trading dip.
The IPO is structured with eToro offering 5 million shares, while an additional 5 million will be provided by key figures within the company, including co-founder and CEO Yoni Assia, his brother and executive director Ronen Assia, and prominent venture firms like Spark Capital and BRM Group. Notably, there’s keen interest from BlackRock, with funds indicating they might snatch up $100 million worth of shares at the IPO. Furthermore, eToro has earmarked 500,000 shares for a directed share program, typically reserved for employees—a nod to its internal stakeholders.
Crypto Revenue and Market Challenges
eToro’s financials paint a promising picture. In 2024, the company reported a staggering $12.1 billion in revenue from its crypto operations, a leap from $3.4 billion the previous year. However, the first quarter of 2025 has seen crypto commissions contribute only 37% to trading activity, down from 43% in the same period last year. This shift raises questions about the sustainability of crypto’s dominance in eToro’s revenue mix.
Yet, it’s not all smooth sailing. The company candidly acknowledged several risks in its filing—chief among them, the potential for users to defect due to negative perceptions of cryptocurrencies, whether fueled by media narratives or significant losses. Moreover, state-level crypto regulations in the U.S. present hurdles that could strain eToro’s resources and limit its operational capacity in certain jurisdictions. The looming European Union’s Markets in Crypto-Assets (MiCA) laws are also expected to impose ongoing costs, adding another layer of complexity to eToro’s expansion strategy.
Navigating Market Turbulence
This IPO comes after a series of market disruptions. eToro initially filed confidentially with the U.S. Securities and Exchange Commission (SEC) in January, with public announcements following in March. However, global markets stumbled following President Donald Trump’s controversial “Liberation Day” tariff announcements on April 2, which led to a temporary pause in many IPO plans, including eToro’s.
Despite these setbacks, eToro is forging ahead, and it’s not alone. The crypto ecosystem is bustling with activity, as evidenced by stablecoin issuer Circle’s recent filing, albeit paused, for a public offering. Meanwhile, crypto exchange Kraken is reportedly fast-tracking its own IPO plans, buoyed by the shifting political landscape with Trump’s election. This mirrors the strategic financial maneuvers seen in Robinhood Tops Q1 Earnings Estimates, Boosts Buyback Authorization by $500M.
Leading the charge for eToro’s public offering are financial heavyweights Goldman Sachs, Jefferies, UBS Investment Bank, and Citigroup. Their involvement underscores the seriousness of eToro’s ambitions and the high stakes of this market entry.
Looking Ahead
As eToro gears up for its Nasdaq debut, the broader implications for the crypto market are substantial. The company’s foray into the U.S. public markets signals a maturing industry that is increasingly intertwined with traditional financial systems. Yet, the path is fraught with regulatory challenges and shifting market dynamics. Will eToro’s bold move pay off in the long run? That remains to be seen, but one thing is clear: the world of finance is watching closely.
This IPO is more than just a financial maneuver—it’s a litmus test for the appetite of both retail and institutional investors in the volatile waters of cryptocurrency. As eToro steps onto this grand stage, its performance could well set the tone for other crypto companies eyeing public offerings in the near future.
Source
This article is based on: eToro aims for $4B valuation, $500M raise for US IPO
Further Reading
Deepen your understanding with these related articles:
- Morgan Stanley Eyes Launching Crypto Trading Through E*Trade: Bloomberg
- Morgan Stanley eyes crypto rollout for E*Trade platform: Bloomberg
- Nasdaq Seeks SEC Approval to List 21Shares Dogecoin ETF
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
