EToro Takes Another Shot at Going Public with $5 Billion US IPO: Report

After years of ups and downs, eToro has confidentially filed for an initial public offering (IPO) with the U.S., targeting a valuation of over $5 billion, the Financial Times reported.If successful, the move could position eToro as one of the few publicly traded companies offering crypto trading in the U.S., alongside giants like Coinbase and Robinhood.

A Resilient Comeback

This isn‘t eToro’s first attempt to go public. In 2021, the platform planned a $10.4 billion SPAC merger but abandoned the effort due to challenging market conditions. Fast forward to 2023, eToro raised $250 million at a $3.5 billion valuation, signaling a rebound fueled by rising equity and cryptocurrency markets.

EToro, founded in Israel in 2007, offers users the ability to trade cryptocurrencies, stocks, and ETFs. With over 3 million customers managing $11.3 billion in assets, the platform caters to retail investors globally, although it faces regulatory hurdles in the U.S.

Competing in the Public Market

In 2024, eToro reached a settlement with the SEC over alleged violations of federal securities laws. The company paid $1.5 million in penalties and restricted U.S. users to trading only a handful of cryptocurrencies, including Bitcoin, Ether, and Bitcoin Cash.

This regulatory scrutiny has not deterred eToro from pursuing a U.S. listing. If eToro succeeds, it will join other publicly traded companies offering cryptocurrency trading.

However, it will face stiff competition from Coinbase and Robinhood. Still, eToros focus on a diverse asset portfolio and its social investment features could give it an edge in attracting retail traders.

With Goldman Sachs, Jefferies, and UBS advising on the listing, the company is poised to make a strong bid for investor confidence. Asked about the IPO, the company said: “We are not commenting on IPO rumors.”