eToro (NASDAQ:ETOR), a brokerage also offering crypto trading, listed its shares on the Nasdaq yesterday in an initial public offering (IPO) that quickly saw its share price rise.
eToro originally priced its shares at $52. By the end of the day, eToro was trading at $67. eToro raised approximately $620 million before expenses and other adjustments. Insiders sold about 5.9 million shares in the offering.
The IPO is part of a group of new offerings that may indicate a return to public offerings which declined in the past few years.
At one point, eToro sought to go public via a SPAC. The deal was called off, with the founder now calling the move the right decision.
In 2021, blank check firm Fintech Acquisition Corp. V sought to merge with eToro in a move that would have valued the company at $10.4 billion. At that time, eToro reported around 20 million users (different from funded accounts).
Today, eToro is trading at a market cap of around $5.4 billion.
Founded in 2007 in Israel, eToro was an early investor in Bitcoin. In an interview with CNBC, founder and CEO Yoni Assia shared that he bought Bitcoin at $5 each but was forced by his board to exit the position as it was not part of their business. One must wonder if these board members still feel good about their decision.
Today, eToro is part of a new legion of brokers that leverage technology, including social investing, and incorporate alternative assets in a way that appeals to younger investors.
eToro recorded a net income of $192.4 million for the year ending December 31, 2024. The prior year, the company reported just $15 million in net income. As of March 31, 2025, assets under administration are around $14.8 billion compared to $12.2 billion as of March 31, 2024.
The company reports that equities, currencies, commodities, and cryptoassets account for 43%, 4%, 16%, and 37% of their commissions generated from trading.
eToro is preparing for a substantial wealth transfer in the coming years as Baby Boomers pass on their assets to their heirs, which is expected to “represent a significant tailwind for retail investing.”
