eToro files US IPO, eyes $5b market valuation
eToro could list in New York as early as the year’s second quarter after privately filing an initial public offering in the U.S.
Crypto exchange and equity trading provider eToro has confidentially submitted initial public offering documents to the Securities and Exchange Commission, according to inside sources cited by the Financial Times on Jan. 16.
According to the report, eToro’s IPO is backed by industry giants such as Goldman Sachs, Jefferies, and UBS as distribution partners. The news confirms an earlier report published in early December.
Additionally, people familiar with the matter stated that the company could list its shares in New York by the second quarter of 2025. eToro is targeting a $5 billion valuation for its IPO, an increase from its $3.5 billion market cap reported in 2023.
eToro’s road to a US IPO
Plans for an IPO have been circulating since March 2021, when the Israel-based crypto and stock trading company sought to go public through a Special Purpose Acquisition Company deal with FinTech Acquisition Corp. V, a firm backed by banking veteran Betsy Cohen.
The SPAC merger, which aimed for a $10.4 billion valuation, ultimately fell through during the 2022 bear market. At the time, eToro stated that the SEC had rejected its bid.
Circle similarly attempted to go public via a SPAC agreement with Concord Acquisition Corp. However, that deal also sunk due to delayed responses from the SEC. Circle, the issuer of crypto’s second-largest stablecoin (USDC), also filed for an IPO confidentially with the SEC. The digital payment titan relocated its HQ to New York pending SEC approval.
If successful, eToro would join an exclusive list of crypto-related companies with New York stock listings. This includes several Bitcoin (BTC) miners, such as Marathon Digital, as well as crypto exchange giant Coinbase and Trump Media acquisition target Bakkt.
The company agreed to pay $1.5 million in fines to settle securities violation allegations levied by the U.S. SEC.
