eToro files for US IPO, targeting $5 billion valuation
eToro files for US IPO, targeting $5 billion valuation
Israeli trading platform plans New York listing as early as Q2 2025.
eToro, the Israeli-founded retail trading platform, has taken a significant step towards going public by submitting confidential filings with the U.S. Securities and Exchange Commission (SEC). The move, which could lead to an initial public offering (IPO) as early as the second quarter of 2025, is expected to value the company at more than $5 billion, according to the Financial Times.
Representatives for eToro declined to comment.
This is not eToro’s first attempt to go public. In 2021, the company sought to merge with a special purpose acquisition company (SPAC) in a deal that would have valued it at $10.4 billion. However, the plan was abandoned in 2022 amid a broader collapse in the SPAC market.
In its most recent funding round in March 2023, eToro, headed by CEO Yoni Assia, raised $250 million at a valuation of $3.5 billion. The round was led by ION Group and SoftBank’s Vision Fund 2, with additional participation from Velvet Sea Ventures and other existing investors. The anticipated IPO would mark a dramatic rebound in valuation for the company, which has capitalized on the ongoing growth of retail trading and the global enthusiasm for cryptocurrency assets.
In addition to its IPO ambitions, eToro has been expanding its offerings. In September 2023, the company acquired the Australian investment app Spaceship for approximately $55 million.
The company, which employs around 1,700 people, including 1,000 in Israel, has also faced regulatory challenges. In the same month as the Spaceship acquisition, eToro settled charges with the SEC by agreeing to pay a $1.5 million fine. The regulator alleged that eToro operated as an unregistered broker and clearing agency in the U.S. since at least 2020, allowing customers to trade crypto assets classified as securities without adhering to federal registration requirements. While eToro did not admit or deny the allegations, the settlement’s restrictions apply only to its U.S. operations.
An IPO would come at a time of heightened interest in cryptocurrency-related financial activities. Industry observers are closely watching eToro’s efforts to leverage its crypto-heavy platform and its global reach to attract investors. If successful, the listing would represent a major milestone for eToro and underscore its resilience in navigating market volatility and regulatory scrutiny.
