What happened?
eToro is planning to go public in the United States with a targeted valuation of $4 billion, as revealed through a recent regulatory filing. The stock and crypto trading company aims to list on the Nasdaq Global Select Market under the ticker “ETOR” and intends to raise $500 million by offering 10 million shares priced between $46 and $50 each. Half of these shares will be sold by the company, while the other half will come from existing shareholders, including co-founder Yoni Assia and major investors like Spark Capital.
Who does this affect?
The eToro IPO primarily affects existing shareholders, potential investors, and employees participating in the directed share program. Notably, prominent investors such as BlackRock have shown interest in purchasing significant shares, with $100 million worth potentially being acquired at the IPO. Employees and early supporters of eToro stand to benefit from the 500,000 shares reserved for them in a directed share program.
Why does this matter?
This IPO is significant as it highlights a growing trend of crypto firms seeking public listings amid increasing regulatory clarity in the US. By going public, eToro joins other crypto firms like Circle and Kraken, indicating a broader industry push towards public markets. The IPO also has market implications, as it positions eToro as a strong competitor to firms like Robinhood, especially with its significant revenue from crypto trading, which was $12.1 billion in 2024.