Social trading platform eToro is planning a US IPO with Goldman Sachs, targeting a $3.5 billion valuation, marking its second attempt at going public after a failed SPAC merger in 2022.
Israel-based social trading and multi-asset investment company eToro is reportedly working closely with Goldman Sachs Group Inc. (NYSE: GS) on a potential initial public offering in the United States. The globally available trading platform is reportedly seeking to go public in the United States by the second quarter of 2025, but the final date has not yet been set.
According to a report by Bloomberg, eToro is seeking to go public at a valuation of at least $3.5 billion, following last year’s $250 million funding round. This is not the first time that eToro has sought to go public without success since the Covid-19 crisis.
In March 2021, eToro intended to go public via a merger with FinTech Acquisition Corp (NASDAQ: FTCV), which never happened. Notably, the company cited market instability and internal challenges with the SPAC for the deal cancellation in 2022. Furthermore, eToro lost $259 million in the failed SPAC merger, which resulted in job cuts.
However, the company has significantly reorganized its operations and services amid the mainstream adoption of digital assets and blockchain technology to ensure sustainable business growth. Consequently, eToro has gained significant interest from institutional investors ahead of its imminent IPO.
As Coinspeaker reported earlier this year, eToro’s CEO, Yoni Assia, is confident that the company will eventually become a publicly traded company.
eToro and the Market Outlook
Since 2017, eToro has paid significant attention to blockchain-based social trading after a strategic partnership with CoinDash. Furthermore, eToro acquired several crypto-focused companies including Firmo and Delta in 2019. In the same year, eToro launched its cryptocurrency trading platform and a standalone cryptocurrency wallet for United States customers.
The company has grown to a major trading firm following its strategic partnership with the London Stock Exchange and also with the Elon Musk-backed X platform to provide Oracle data. Consequently, the trading platform has more than 35 million globally registered users and over 3 million funded accounts as of early 2024.
However, the notable growth has come with significant headwinds, including regulatory hurdles in different countries.
In mid-September, eToro USA LLC agreed to pay $1.5 million to the U.S. Securities and Exchange Commission (SEC) for ostensibly operating as an unregistered broker and clearing agency. Although the trading platform entered into a cease-and-desist order without admitting or denying the allegations, its US customers can still trade a handful of cryptocurrencies.
Under the leadership of President Donald Trump, the United States is expected to attract more Web3 startups. As a result, eToro is likely to add more crypto functionalities in the coming years to improve its revenue streams.
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