eToro Plans for an IPO in the US by the First Half of 2025, with a Valuation of at Least $3.5 Billion

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After following the development of eToro for quite some time, I find myself intrigued by their persistent pursuit of going public. As a researcher with a keen interest in finance and technology, I have seen many companies rise and fall, and eToro seems to be one that refuses to back down.

As a researcher, I’m sharing some intriguing news: eToro, a social trading and multi-asset investment company based in Israel, seems to be collaborating closely with Goldman Sachs Group Inc. (NYSE: GS) regarding a potential Initial Public Offering (IPO) in the United States. This globally accessible trading platform is rumored to aim for a U.S. public listing by the second quarter of 2025, although the exact date remains unconfirmed at this point.

Based on Bloomberg’s report, eToro aims to become publicly traded with a valuation of at least $3.5 billion, following their recent $250 million funding round. However, this isn’t the first time that eToro has attempted an initial public offering since the Covid-19 pandemic, but previous attempts have not been successful.

In March 2021, eToro planned to become a public company through a merger with FinTech Acquisition Corp (NASDAQ: FTCV), but this merger didn’t take place. Importantly, eToro attributed the cancellation of the deal in 2022 to market volatility and difficulties encountered with Special Purpose Acquisition Companies (SPACs). Additionally, the unsuccessful SPAC merger cost eToro $259 million, leading to job reductions within the company.

As a researcher, I’ve observed that our company has undergone a substantial transformation in its operations and services, aligning with the increasing mainstream acceptance of digital assets and blockchain technology. This strategic move is aimed at fostering long-term business expansion. Notably, this transition has sparked considerable interest from institutional investors, who are eagerly anticipating our Initial Public Offering (IPO).

According to a previous report by Coinspeaker, it was mentioned that eToro’s CEO, Yoni Assia, feels optimistic about the future and anticipates that his company will eventually go public.

eToro and the Market Outlook

Starting from 2017, eToro has been actively involved in blockchain-driven social trading, following a strategic alliance with CoinDash. Additionally, they bought multiple businesses specialized in cryptocurrencies like Firmo and Delta during 2019. In the same year, eToro introduced a platform for trading cryptocurrencies and a digital wallet for crypto transactions specifically designed for American users.

Through strategic alliances, notably with the London Stock Exchange and a platform endorsed by Elon Musk (Oracle data provider), the company has expanded into a prominent global trading firm. Currently, the trading platform boasts over 35 million registered users worldwide and more than 3 million funded accounts, as reported in early 2024.

Nevertheless, this remarkable expansion has been accompanied by considerable challenges, such as regulatory obstacles in various nations.

In mid-September, eToro USA LLC consented to pay $1.5 million to the U.S. Securities and Exchange Commission (SEC) for what appears to be operating without proper registration as a broker and clearing agency. Despite entering into a ‘stop and don’t do it again’ order without admitting or contesting the accusations, their US clients can continue trading several types of cryptocurrencies.

Under Donald Trump’s presidency, it’s anticipated that the U.S. will draw an increasing number of innovative Web3 companies. This trend may lead eToro to expand its cryptocurrency features over the next few years, aiming to boost its income sources.

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2024-12-06 20:39