eToro Aims for US IPO by Q2 2025 Valued at $3.5 Billion
Israel-based social trading and multi-asset investment company eToro is collaborating with Goldman Sachs Group Inc. (NYSE: GS) on a potential initial public offering (IPO) in the United States. eToro aims to go public by the second quarter of 2025, though a final date remains unconfirmed.
According to a report by Bloomberg, eToro seeks a valuation of at least $3.5 billion following last year’s $250 million funding round. This marks another attempt for eToro to go public after previous efforts were unsuccessful since the Covid-19 crisis.
In March 2021, eToro planned to merge with FinTech Acquisition Corp (NASDAQ: FTCV), but this did not materialize. The company cited market instability and internal issues as reasons for canceling the deal in 2022, which resulted in a $259 million loss and subsequent job cuts.
Despite these challenges, eToro has reorganized its operations to adapt to the growing adoption of digital assets and blockchain technology, attracting institutional investor interest ahead of its IPO.
As reported by Coinspeaker, eToro’s CEO, Yoni Assia, maintains confidence that the company will eventually become publicly traded.
eToro and the Market Outlook
Since 2017, eToro has focused on blockchain-based social trading, establishing a partnership with CoinDash. It has acquired several crypto-focused companies, including Firmo and Delta in 2019, and launched a cryptocurrency trading platform along with a standalone wallet for U.S. customers that same year.
The company has evolved into a significant trading firm through partnerships with the London Stock Exchange and the Elon Musk-backed X platform for Oracle data. As of early 2024, eToro boasts over 35 million registered users and more than 3 million funded accounts.
However, growth has been met with regulatory challenges. In September, eToro USA LLC agreed to pay $1.5 million to the U.S. Securities and Exchange Commission (SEC) for operating as an unregistered broker and clearing agency. While entering a cease-and-desist order without admitting or denying the allegations, U.S. customers can still trade select cryptocurrencies.
Under President Donald Trump, the U.S. is expected to attract more Web3 startups. Consequently, eToro may enhance its crypto functionalities in the coming years to diversify revenue streams.