eToro Targets $4 Billion Valuation with $500 Million U.S. IPO

Israel-based eToro Group announced on May 5 that it plans to list on the Nasdaq Global Select Market under the ticker symbol “ETOR.” The IPO will include 10 million shares priced between $46 and $50 apiece—half offered by the company and half by existing shareholders, including CEO and co-founder Yoni Assia, executive director Ronen Assia, and venture backers such as Spark Capital, BRM Group, and Andalusian Private Capital.

The listing marks a significant step for eToro as it continues to expand its presence in the U.S. market, where it competes with platforms like Robinhood Markets Inc. (NASDAQ: HOOD). Despite a dip in crypto trading volumes for Robinhood in the first quarter of 2025, its stock has surged nearly 30% year-to-date, according to Google Finance.

BlackRock-Backed Interest

A recent filing with the U.S. Securities and Exchange Commission (SEC) reveals that certain BlackRock-managed funds and accounts have shown interest in purchasing up to $100 million worth of shares at the IPO. Additionally, 500,000 shares will be made available through a directed share program, commonly aimed at employees and insiders.

Source: Matthew Sigel

Revenue Surge and Crypto Growth

eToro reported a substantial boost in crypto-related revenue in 2024, reaching $12.1 billion—up from $3.4 billion the previous year. Although crypto accounted for 43% of its trading commissions in Q1 2024, that share is expected to dip slightly to 37% in Q1 2025.

Despite this growth, eToro remains cautious about future volatility in the crypto market. In its IPO filing, the company flagged several risk factors, including potential user churn and reputational damage linked to negative media coverage or significant investor losses in cryptocurrencies.

Regulatory Challenges

The company also acknowledged mounting regulatory pressure. It cited U.S. state-level crypto regulations as a potential operational hurdle, warning that compliance demands could strain resources or limit activity in certain jurisdictions. In Europe, eToro expects ongoing expenses related to compliance with the European Union’s Markets in Crypto-Assets (MiCA) legislation.

IPO Timing and Market Context

eToro first confidentially filed for its IPO with the SEC in January before publicly disclosing the plans in March. Its debut was briefly delayed after former President Donald Trump’s April 2 “Liberation Day” tariff announcement rattled global markets and stalled several public listings.

Still, eToro is moving ahead as other crypto firms eye the public markets. Stablecoin issuer Circle filed for an IPO on April 1 but has since paused its plans amid economic uncertainty. Crypto exchange Kraken is also reportedly accelerating its own IPO timeline, potentially targeting early 2026.

eToro’s offering is being led by a powerhouse underwriting team, including Goldman Sachs, Jefferies, UBS Investment Bank, and Citigroup.