eToro Targets $4 Billion Valuation and $500 Million Raise in Upcoming US IPO

Highlights:

• eToro plans to raise $500 million in its upcoming IPO by offering 10 million shares.
• BlackRock funds are looking into purchasing as much as $100 million in shares during the offering.
• eToro faces competition from Robinhood while navigating challenges from U.S. regulations.

eToro Group, based in Israel, is preparing to launch its public offering in the US with a valuation goal of up to $4 billion. The platform, known for enabling retail investors to trade both stocks and cryptocurrencies, plans to be listed on the Nasdaq Global Select Market under the ticker symbol “ETOR.”

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On Monday, eToro announced it aims to raise $500 million by selling 10 million shares, each priced between $46 and $50. According to a filing with the U.S. Securities and Exchange Commission (SEC), eToro intends to offer 5 million shares in its upcoming IPO. The remaining 5 million shares will be sold by CEO Yoni Assia, his brother Ronen, and significant investors such as Spark Capital and BRM Group.

eToro filed an updated IPO prospectus seeking to raise $500M at a $4B valuation $ETOR.

>Mentions crypto 630 times
>Crypto trading is 38% of transaction revenue
>$ETOR held $113M in digital assets (likely BTC) as of year-end 2024
>Net income of $192M, so ~21x PE. pic.twitter.com/o0vt83pqYz

— matthew sigel, recovering CFA (@matthew_sigel) May 5, 2025

Institutional Support and Employee Share Program for IPO

The filing reveals that some BlackRock funds and accounts are interested in purchasing up to $100 million in shares at the IPO price. The company also set aside 500,000 shares for a special program, usually meant for employees. eToro will compete with Robinhood (HOOD), which had a drop in crypto trading in the first quarter, but its stock has still gone up nearly 30% this year, according to Google Finance.

Founded in 2007, eToro is mainly serving retail investors. The company’s crypto revenue saw strong growth, rising from $3.4 billion in 2023 to $12.1 billion in 2024. eToro expects cryptocurrency to contribute 37% of its trading commissions in Q1 2025, down from 43% in the same quarter the year before.

eToro has also taken steps to follow U.S. rules. In September, eToro reached an agreement to restrict its crypto services in the United States. Now, it only offers Bitcoin, Bitcoin Cash, and Ethereum. This was part of a deal with the SEC after being accused of running without proper registration.

eToro Faces Challenges Ahead of IPO Amid Crypto Market Risks and Regulations

eToro warned that it could lose users or have trouble gaining new ones if people hear negative things about the cryptocurrencies it offers or lose a lot of money. The company also mentioned risks from state-level crypto rules in the US, which could strain its resources and make it hard to operate in some areas. It also expects to keep facing high costs due to the European Union’s new crypto laws (MiCA).

The IPO is being led by top financial firms like Jefferies, UBS, Goldman Sachs, and Citigroup. eToro privately filed with the SEC in January and publicly disclosed its IPO intentions on March 24. The company reportedly delayed its IPO after President Donald Trump’s April 2 tariff announcement caused a market downturn, halting several public offerings in progress.

Crypto companies are planning to go public too. Circle, the issuer of the USDC stablecoin, submitted an IPO filing on April 1 but later paused the process due to market uncertainty. Crypto exchange Kraken is also considering going public early next year, speeding up its plan after Trump’s election.

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