Crypto, Stock Trading Platform eToro Soars to $5.4 Billion Market Cap After Nasdaq Debut

Shares of stock brokerage platform eToro closed 29% higher on Wednesday following the firm’s Nasdaq debut, settling around $67, according to the exchange’s website . The firm said in a press release that it sold 6 million shares at $52 each, raising $310 million through its initial public offering. Based on current prices, the firm is valued at roughly $5.4 billion, according to Nasdaq. EToro’s debut reflects the more favorable environment for crypto-related firms. The Israel-based company was among several including exchange Kraken and stablecoin issuer Circle that expressed an interest in going public this year, a shift in attitude that was nearly unthinkable to many observers as U.S. regulators scrutinized the industry. EToro generates trading income by charging users a fee on top of the spread for certain trades. The firm also receives management fees from the transfer of digital assets on its platform, as well as activity tied to “crypto asset wallet services.” Last year, eToro generated $12.4 billion worth of revenue from digital assets, up significantly from $3.4 billion in 2023, according to an amended registration statement filed with the Securities and Exchange Commission in mid-March. The company also held $113.2 million worth of digital assets on its balance sheet, as of Dec. 31, 2024. That figure was slightly down from $114.7 million a year before. In a letter that’s included in eToro’s amended registration statement, eToro co-founder and CEO Yoni Assia described crypto as “a revolutionary technology with the potential to decentralize and democratize financial systems on a global scale.” “Its underlying principles of transparency, security, and inclusivity resonate deeply with eToro’s mission,” he continued. “As one of the first global investment platforms to embrace crypto, we have helped millions of investors to access this nascent asset class in a safe way.” The firm, which was founded in 2007, first offered Bitcoin trading in 2013. In 2017, it broadened its digital asset offerings to include Ethereum, among other popular cryptocurrencies. At one point, eToro’s users in the U.S. had access to over 70 digital assets. However, following a $1.5 million settlement with the SEC last year, the company agreed to stop offering all but three (in the U.S.): Bitcoin, Ethereum, and Bitcoin Cash. The SEC accused eToro of operating an unregistered broker and clearing agency “in connection with its trading platform that facilitated buying and selling certain crypto assets as securities,” according to a statement from the regulator. At the time, Assia told Decrypt in a statement that the shift would have “minimal impact on our global business.” According to eToro’s website , the company’s services are available in around 70 countries. Similar to crypto exchange Coinbase, eToro users can stake several cryptocurrencies using the company’s platform. Staking refers to the process of locking up cryptocurrencies to participate in the process of validating transactions in exchange for rewards. The eToro service, while available in some parts of Europe, is not available to customers in the U.S. EToro was among several platforms, including retail brokerage Robinhood, that s uspended trading for cryptocurrencies in 2023, as the SEC pressed forward with high-profile lawsuits against Coinbase and crypto exchange Binance. The SEC had alleged that several tokens were unregistered securities in those lawsuits—but those cases have since been abandoned. Edited by James Rubin