Social investment platform eToro is expanding its presence in the United States after entering a definitive agreement to acquire options trading platform Gatsby for approximately $50 million.
EToro had filed with the US Securities and Exchange Commission (SEC) for regulatory clearance back in December 2021. The firm has now obtained the all clear from Finra in order to move forward with the transaction involving Gatsby, a commission-free options and stock trading app that aims to serve on younger clients.
Co-CEOs and co-founders Jeff Myers and Ryan Belanger-Saleh will reportedly become part of the eToro team along with other senior staff members.
EToro’s management noted that the acquisition should help diversify its product offering to US clients, which is presently focused on crypto-assets and stocks.
Yoni Assia, CEO, eToro, stated:
“Scaling our US business is a strategic focus for eToro and through Gatsby we can provide US users with access to a safe and simple way to trade options, which we know are particularly attractive in challenging markets.”
In July 2022, eToro decided to pull the plug on its planned $10.4 billion SPAC deal with blank cheque company Fintech Acquisition Corp V.
First reported in March 2021, the transaction was supposed to see eToro list on Nasdaq, however, conditions had not been met by the June 30 deadline.
As covered recently, eToro, the social investment network, announced that it has registered with the Italian regulator Organismo Agenti e Mediatori (OAM), becoming the latest investment platform to “join the registry of crypto-asset providers in Italy.”
This demonstrates eToro’s commitment “to working hand in hand with regulatory authorities to ensure compliance with rules and regulations and to safeguard retail investors.”
Emanuela Manor, eToro’s Regional Manager for Italy, said:
“We are very proud to have received this registration from the Organismo Agenti e Mediatori (OAM) which will offer our Italian users an extra layer of peace of mind when investing with eToro. Our goal is to get more people investing and we fully support all regulatory measures that protect retail investors without excluding those who could benefit most, or stifling innovation.”
With this registration, eToro strengthens its presence in the ‘Bel Paese’ at a time “when research indicates that over a third (38%) of Italians have taken advantage of the current crypto winter to increase their allocation to crypto-assets, and 44% have continued to hold their crypto investments.”