A global cryptocurrency exchange and equity trading platform called eToro has taken a significant step towards going public in the United States. According to the Financial Times, the Israel-based company has confidentially filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC).
Major financial players such as Goldman Sachs, Jefferies, and UBS are on board as distribution partners for eToro; the company is reportedly aiming for a $5 billion valuation. It is possible they could list on the New York Stock Exchange sometime in the second quarter of 2025.
eToro’s Journey to a U.S. IPO
eToro’s journey to a U.S. IPO has been long in the making. The idea was first put forward in March 2021 when the company tried to go public through a Special Purpose Acquisition Company (SPAC) merger with FinTech Acquisition Corp. That $10.4 billion deal fell apart as 2022’s crypto bear market kicked in and the SEC rejected it.
And eToro has persevered against setbacks. Its latest filing follows a turbulent stretch of crypto IPOs, similar to Circle, the issuer of USDC stablecoin, which failed to meet the minimum offering requirements necessary to list its shares. Like Circle’s, its SPAC merger plans failed to complete on time because of delays in SEC approvals, but, like Circle, it has also filed for a traditional IPO recently.
If successful, eToro will join the ranks of crypto-focused companies trading in the U.S. on stock exchanges. This includes Coinbase, Bitcoin mining companies such as Marathon Digital, and Bakkt, a digital asset marketplace.
The increased interest of the mainstream financial sector to embrace businesses related to cryptocurrency is being reflected in the potential etoro listing. Combining the offering of traditional securities with those of cryptocurrencies, the company wants to leverage off its global user base and its status as a multi-asset platform.
Like lots of people in the crypto business, eToro has been subject to regulatory queries. The SEC alleged that the company violated securities-related laws in 2023 and agreed to pay $1.5 million to settle the allegations. This settlement highlights increasing regulatory pressures on firms in the digital asset space.
eToro’s attempt to bid for a $5 billion valuation is a significant leap from the reported $3.5 billion market capitalization in 2023. The IPO would come with the backing of some of Wall Street’s largest names and announces optimism coming to the cryptocurrency sector after a bout of market turbulence and regulatory uncertainty.
The New York listing could be a benchmark for other crypto companies planning to list in the U.S. market, giving the industry further presence on Wall Street. eToro’s IPO will also be closely watched by investors and other industry stakeholders as the crypto-related business IPO landscape continues to evolve.
