CTAs keep buying Treasuries, gold longs face stop-loss risk: BofA
eToro, the Israel-based online trading platform, has confidentially filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC).
The company has not yet determined the number of shares to be offered or their price range. The listing will proceed following the SEC’s review and will depend on market conditions.
Financial Times, which first reported on eToro’s IPO plans back in January, suggests that the offering could take place as early as the second quarter of 2025. eToro’s valuation is expected to surpass $5 billion if the IPO proceeds. This marks eToro’s second attempt at going public, following a failed $10.4 billion merger with a special purpose acquisition company (SPAC) in 2021, which was later abandoned in 2022 amidst a downturn in the SPAC market.
Despite previous challenges, eToro has demonstrated resilience, securing $250 million in funding in March 2023 at a $3.5 billion valuation. This funding round included contributions from ION Group, SoftBank (TYO:9984)’s Vision Fund 2, and Velvet Sea Ventures. However, contrasting reports from Israel in December indicated that eToro’s shares were privately traded at a valuation close to $1.7 billion, highlighting a significant valuation gap.
eToro has expanded its services and global presence, including the acquisition of the Australian investment app Spaceship for $55 million in September 2023. Nevertheless, the company has encountered regulatory hurdles, such as a $1.5 million settlement with the SEC for operating without proper registration in the U.S. This settlement limits eToro’s cryptocurrency trading activities in the U.S. but does not affect its global operations.
With nearly 1,700 employees worldwide, eToro is led by CEO Yoni Assia and continues to focus on the evolving cryptocurrency market. The firm’s IPO initiative coincides with a broader interest in crypto-related financial activities and follows the strong market performance of competitors such as Robinhood (NASDAQ:HOOD), Plus500 (LON:PLUSP), XTB, and Swissquote.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.