Israeli trading platform eToro is moving forward with a highly anticipated U.S. IPO, seeking a valuation of up to $4 billion as market conditions improve after a period of instability. The company and its shareholders plan to raise up to $500 million by offering 10 million shares at $46–$50 each, with a Nasdaq listing under the ticker ETOR. The IPO is viewed as an indicator of investor appetite for new listings during an early-stage market recovery.
Per a 2023 settlement with the U.S. Securities and Exchange Commission (SEC), eToro restricts its American crypto offerings to Bitcoin (BTC), Ether (ETH), and Bitcoin Cash (BCH). This limitation followed charges of unregistered brokerage activities. Global asset manager BlackRock may purchase up to $100 million in shares, showing strong institutional interest. The IPO is led by major banks including Goldman Sachs and Citigroup.
eToro’s last IPO attempt in 2021 collapsed due to a SPAC downturn. Since then, it secured $250 million in funding at a $3.5 billion valuation from investors like ION Group and SoftBank, though private trades in December 2023 valued the firm lower. Beyond the flotation, eToro has acquired new businesses and expanded globally, despite past regulatory hurdles in the U.S. The IPO coincides with rising retail and institutional interest in cryptocurrencies, boosted by Bitcoin’s recent price surge and positive sentiment toward crypto trading platforms.