eToro Makes a Splash on the Nasdaq: A New Era for Fintech IPOs
Zesty Debut for the Trading Platform Giant
eToro's Stock Closes at $67 on Nasdaq After Initial Public Offering, Rising 29% Above Initial Price
eToro, the beloved stock and cryptocurrency trading platform, kicked off its Nasdaq adventure with a bang, as shares soared an impressive 29% on their inaugural trading day, closing at a staggering $67. If that's not enough, the stock reached a high of $74.26 during the trading session!
This IPO has given eToro a market cap of roughly $5.5 billion, making heads turn in the financial world. The company and its backers sold approximately 12 million shares, equally split, and the demand was so high that the shares were priced premium, at $52 each, surpassing the anticipated range of $46 to $50.
Power Player in the Crypto Arena
eToro has been steadily increasing its footprint in the crypto market in recent years. Their crypto revenue skyrocketed from $3.4 billion in 2023 to an impressive $12.1 billion in 2024, tripling their earnings year-over-year.
As of now, crypto assets make up a substantial part of eToro's business. Last year, crypto contributed to 25% of the company's net trading contribution, rising sharply from merely 10% in 2023. For the first quarter of 2025, eToro anticipates crypto assets accounting for 37% of its commission from trading activities, marking a decrease from 43% during the same period last year.
Beyond cryptocurrency, eToro brings in additional revenue through various trading-related fees and non-trading activities like withdrawal charges. The company's overall financial health has significantly improved, with net income jumping from $15.3 million in 2023 to an impressive $192.4 million in 2024.
Robert Francis, eToro Australia's managing director, shared his thoughts, stating, "eToro's IPO is a clear sign that retail investing is not a fleeting trend, but a long-term one." Robinhood Markets Inc., eToro's main competitor, saw a slight dip in its share price, down by 1.9% to $61.39 on the day of eToro's debut.
Roots and Revival
eToro was established in 2007 by brothers Yoni and Ronen Assia along with David Ring. After attempting a SPAC merger in 2021 that would have valued the company at over $10 billion, this IPO marks eToro's second attempt at going public. However, due to market volatility caused by President Donald Trump's tariff announcements in April, the plans were temporarily put on hold.
According to CEO Yoni Assia, "We felt we were at the end of the tunnel of the correction in the markets," and the improving market conditions allowed them to proceed with the IPO. With financial heavyweights like Goldman Sachs, Jefferies, UBS Investment Bank, and Citigroup leading the offering, eToro's successful debut could mark a resurgence in the IPO market.
Companies such as Chime and digital physical therapy company Hinge Health have already filed for their own public offerings, while crypto firms like Kraken, Circle, and Stablecoin are considering joining the party, should market conditions remain favorable.
[1] "eToro's US IPO forces a reckoning for Robinhood", Financial Times, May 14, 2025[2] "eToro IPO: What It Means for the Fintech Industry", The Verge, May 14, 2025[3] "eToro goes public, marking a turning point for fintech IPOs", CNBC, May 14, 2025[4] "What eToro's Successful IPO means for the Crypto Market", Coindesk, May 14, 2025
- The successful initial public offering (IPO) of eToro, a renowned trading platform that specializes in both finance and cryptocurrency, has sparked a wave of interest in fintech IPOs, signifying the increasing importance of technology in traditional finance.
- With its impressive debut on the Nasdaq, eToro's growth in the crypto market—where crypto assets account for a substantial part of its business—highlights the potential for investing in this emerging technology, potentially encouraging other crypto firms like Kraken, Circle, and Stablecoin to follow suit.
