tl;dr
Shares of stock brokerage platform eToro rose 29% to around $67 following its Nasdaq debut, raising $310 million by selling 6 million shares at $52 each. The company is valued at approximately $5.4 billion. eToro, based in Israel, benefits from a more favorable environment for crypto firms and gener...
eToro's shares surged 29% on its Nasdaq debut, reaching around $67 per share and valuing the company at approximately $5.4 billion after raising $310 million by selling 6 million shares at $52 each.
The Israel-based platform showcased strong growth in crypto trading, with digital asset revenue jumping from $3.4 billion in 2023 to $12.4 billion in 2024, while holding $113.2 million in digital assets as of December 31, 2024.
Founded in 2007, eToro started Bitcoin trading in 2013 and expanded to other cryptocurrencies in 2017. The company's business model includes generating income through trading fees, management fees on digital asset transfers, and crypto wallet services.
Despite regulatory challenges—including a $1.5 million SEC settlement in 2023 for operating an unregistered broker and clearing agency—eToro has limited its U.S. crypto offerings to Bitcoin, Ethereum, and Bitcoin Cash, yet continues to operate in about 70 countries.
CEO Yoni Assia emphasized the company's mission to democratize finance through crypto, praising the technology’s potential for transparency, security, and inclusivity. He noted eToro's role in helping millions access crypto assets safely.
The platform offers crypto staking services outside the U.S., allowing users to lock up cryptocurrencies to validate transactions and earn rewards. However, crypto trading was partially suspended in 2023 amid heightened regulatory scrutiny, similar to other platforms such as Robinhood.
eToro’s successful Nasdaq debut and revenue growth highlight a shift toward a more favorable environment for crypto-related firms globally, despite ongoing regulatory pressures in the U.S. market.