eToro Files for U.S. IPO, Seeks to Go Public

Securities and Exchange Commission. The filing marks a significant step as the company looks to capitalize on its recent financial success.

eToro Reports Strong Financial Growth, Fueled by Crypto

According to the filing, eToro generated $12.6 billion in total revenue and $192 million in net income for 2024, a massive increase from the $3.89 billion in revenue and $15.3 million in profit reported in 2023. A major contributor to this growth was the surge in crypto market activity, which accounted for 96% of the company’s revenue in 2024. This increase in demand comes amid a resurgence in cryptocurrency prices following former President Donald Trump’s pro-crypto policies.

IPO Details Pending, Led by Major Investment Banks

While the filing did not specify how much eToro plans to raise or what the share price will be, the IPO will be led by Goldman Sachs, Jefferies, UBS, and Citigroup. Both the company and its shareholders plan to sell shares as part of the offering, with further details expected in a later filing.

Crypto-Focused Platform Faces Regulatory Hurdles

Founded in 2007, eToro offers a trading app that allows users to follow and copy popular traders. Despite its success, eToro has faced regulatory challenges in the U.S. In September 2024, eToro USA LLC agreed to pay a $1.5 million fine and restrict which crypto assets it offers to U.S. customers. This settlement with the SEC arose from accusations that eToro operated as an unregistered broker and clearing agency, though the company did not admit or deny the charges.

Market Uncertainty: Will eToro’s Growth Continue?

eToro’s IPO filing focused on its strong past performance, without providing forward-looking projections for 2025 or beyond. Given the company’s heavy reliance on crypto, which remains a volatile market, investors will need to assess whether the 2024 surge in demand can be sustained, especially as market conditions and regulatory environments continue to evolve.