Crypto trading platform eToro is considering an IPO in New York or London. The Israeli company, which manages more than $11 billion in assets for its clients, is looking to profit from the rise in the crypto and stock markets.
eToro relaunches its stock market plans
eToro had initially planned togo public in 2021. She had signed a $10.4 billion deal with a blank check company (SPAC). But the crypto broker abandoned this project in 2022, faced with the fall in stock and cryptocurrency prices.
With the recovery of the markets in 2023 and 2024, eToro decides to relaunch its stock market plans. The company aims a valuation of more than $3.5 billion. This is higher than its last fundraising of $250 million in 2022.
“We are exploring the right timing for eToro’s stock market debut… We are considering a listing in New York or London, depending on market conditions and regulations,” said eToro CEO Yoni Assia at Financial Times.
eToro will face tough competition
eToro is not the only crypto broker targeting the stock market. Its American competitor Robinhood went public in 2021, with a valuation of $32 billion.
eToro will also have to face competition from crypto exchanges. We mainly cite Coinbase, Binance and Kraken which have a significant market share as well as a loyal customer base.
Another important point: eToro must comply with the general stock market regulations of the different countries where it operates. Which can limit its expansion and revenues. For example, the company does not offer staking services in the UK due to restrictions imposed by financial authorities.
eToro benefits from strong demand from retail investors for cryptocurrencies, notably Bitcoin. But will it succeed in establishing itself as a major player in the crypto and stock market? This is what we will see in the coming months.
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