Digital trading platform eToro may be queuing for an initial public offering (IPO) on Nasdaq according to a recent report. The Fintech is said to be chatting with Goldman Sachs to manage the IPO.
Depending on where you are sitting, eToro enables trading in both digital assets, listed shares, FX as well as commodities. In the US, it is crypto-only but that may change in the near future.
The Israel based firm is said to be working with Goldman Sachs on the IPO that may take place in Q2 2021, according to Calcalistech. eToro may also be considering going public via a Special Purpose Acquisition Company (SPAC), a popular path to streamline the process of trading shares on an exchange. Valuation may top $2.5 billion fueled by recent gains in new accounts. eToro reportedly gained 5 million new customers in 2020 boosted by COVID lockdowns.
According to the eToro website, the company has over 13 million customers in 140+ different countries. The Fintech says it wants to be the world’s “leading social trading platform,” offering tools to invest in the capital markets including crypto, stocks, commodities, ETFs, etc. eToro has been around for awhile, launching in 2007 – before Fintech was the new cool. It started as an FX trading platform but has used this foundation to expand offerings emerging as a popular choice for a new generation of investors. In 2016, eToro launched a “long-term thematic investment product called “CopyPortfolios.” These are managed portfolios that bundle assets under a predetermined market strategy copying a trader whose performance you like. The minimum amount to invest in a trader is just $200.
In 2018, the company created eToroX, a blockchain subsidiary. eToroX offers a crypto wallet and exchange, that supports tokenized assets. The platform also offers staking.
eToro is regulated in different jurisdictions like by the Cyprus Securities and Exchange Commission for Europe and the Financial Conduct Authority in the UK.