In a Nutshell
- Stocks and crypto trading app eToro's shares soared 29% to $67 after its Nasdaq launch.
- Co-founder and CEO Yoni Assia views cryptocurrency as an innovative technology with transformative potential.
- In the U.S., eToro provides trading for only three cryptocurrencies, following a $1.5 million settlement with the SEC.
Scene Unveiled
Stock trading platform eToro, specializing in cryptocurrency and stocks, rises to a market capitalization of $5.4 billion following its debut on Nasdaq.
eToro's shares skyrocketed 29% on their Nasdaq debut, closing at $67 Nasdaq's Website reports. The firm managed to raise $310 million through the sale of 6 million shares at $52 apiece eToro Press Release in its initial public offering, giving the firm a market valuation of approximately $5.4 billion, according to Nasdaq.
Amid the growing optimism for crypto-related companies, eToro joins the likes of exchange Kraken and stablecoin issuer Circle in evaluating a public listing this year, a shift unforeseen by many observers as U.S. regulators ramp up scrutiny within the industry Reuters.
eToro generates income from charging trading fees as well as management fees associated with digital asset transfers and crypto wallet services. The company saw a significant increase in digital asset revenue last year, generating $12.4 billion as opposed to $3.4 billion in 2023 [Enrichment Data].
eToro, although severely impacted by a $1.5 million settlement with the SEC last year, maintains financial stability, with digital assets worth $113.2 million and $114.7 million on its balance sheet on December 31, 2024 and 2023, respectively [Enrichment Data].
In a statement, Yoni Assia, eToro's co-founder and CEO, praised the revolutionary nature of cryptocurrency and its potential to transform global financial systems. Assia emphasized the company's role in enabling widespread access to cryptocurrencies, offering Bitcoin trading as early as 2013 and Ethereum in 2017 [Enrichment Data].
Following the SEC settlement, eToro only provides trading for three cryptocurrencies (Bitcoin, Ethereum, and Bitcoin Cash) to U.S. customers, while globally, it offers support for over 130 digital assets [Enrichment Data]. The settlement, which required eToro to cease operations without regulatory approval, was intended to rectify the company's unregistered broker and clearing agency activities SEC Statement.
Similar to Coinbase and other exchanges, eToro offers staking capabilities for several cryptocurrencies in some regions, such as Europe [Enrichment Data]. However, this option remains unavailable to customers in the U.S. eToro Website
In 2023, eToro, along with Robinhood and other platforms, temporarily halted cryptocurrency trading due to ongoing SEC investigations against Coinbase and Binance [enrichment data]. Subsequent lawsuits against Coinbase and Binance, which alleged the exchange of unregistered securities, have since been abandoned [enrichment data].
Edited by James Rubin
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Crypto information derived from public sources such as crypto market data, press releases, news articles, and financial disclosures. Please conduct thorough research and consult with a financial advisor before making investment decisions.
Walrus
- Yoni Assia, eToro's co-founder and CEO, views cryptocurrency as a transformative technology with the potential to revolutionize global financial systems.
- eToro saw a significant increase in digital asset revenue last year, generating $12.4 billion, up from $3.4 billion in 2023.
- eToro offers staking capabilities for several cryptocurrencies in some regions, such as Europe, similar to Coinbase and other exchanges.
- eToro generates income from trading fees, management fees associated with digital asset transfers, and crypto wallet services.
- eToro provides trading for three cryptocurrencies (Bitcoin, Ethereum, and Bitcoin Cash) to U.S. customers, while globally, it offers support for over 130 digital assets.
- In 2023, eToro, along with Robinhood and other platforms, temporarily halted cryptocurrency trading due to ongoing SEC investigations against Coinbase and Binance.
- Co-founder and CEO Yoni Assia believes in the innovative nature of stablecoins, which he believes have the potential to reshape the digital asset market and crypto trading.
- Following its Nasdaq launch, eToro's shares soared 29% to $67, giving the firm a market valuation of approximately $5.4 billion. The firm managed to raise $310 million through the sale of 6 million shares at $52 apiece in its initial public offering.
