eToro Quietly Moves Toward U.S. IPO
eToro has submitted a confidential IPO filing to the SEC, seeking a valuation of more than $5 billion as it prepares to go public.
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Financial Times reports details.
eToro is set to make its U.S. debut as soon as Q2, supported by banking giants Goldman Sachs, Jefferies, and UBS.
A Strategic Approach to Going Public
With a confidential IPO filing, eToro can finalize its preparations under the radar, a move designed to provide flexibility during the transition.
The listing could be a defining moment for eToro, a platform well-known for its social trading features and strong emphasis on stocks and crypto trading.
This isn’t the first time eToro has pursued public markets. The platform announced a $10.4 billion merger with SPAC FinTech Acquisition Corp. V in March 2021.
The deal fell through in 2022, hindered by tough market conditions and regulatory pressures.
In March 2023, eToro raised $250 million in funding from ION Group, SoftBank, and Velvet Sea Ventures, bringing its valuation down to $3.5 billion, a stark contrast to its earlier $10.4 billion estimate.
eToro Confidentially Files for IPO in the U.S.
Source: etoro.com
U.S. Crypto IPOs — A Rare Event
Initial public offerings in the crypto industry are rare. Coinbase led the way with a direct listing on Nasdaq in April 2021, becoming one of the few crypto companies to go public.
Bakkt went public via a SPAC merger in October 2021 but has struggled to deliver strong market results.
Circle, the company behind USDC, explored a SPAC merger and later filed a confidential IPO application in January 2024, though it remains privately held.
Facing U.S. Regulatory Scrutiny
eToro encountered regulatory pushback in the U.S., culminating in a $1.5 million settlement with the SEC in September 2024.
The SEC alleged that the platform engaged in cryptocurrency activities without proper registration as a broker and clearing agent. The settlement led eToro to discontinue support for select tokens in the U.S.
eToro Eyes a Bold Future with IPO Plans
For eToro, the potential IPO represents a landmark opportunity to further establish its dominance in stock and cryptocurrency trading, a feat achieved despite regulatory challenges and volatile markets.
A successful listing would likely drive up its valuation and affirm its role as a fintech innovator.
As IPO momentum gradually builds across the crypto and fintech industries, eToro’s plans underscore a wave of renewed optimism sweeping the sector.
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