eToro shares rose sharply in its Nasdaq debut on Wednesday, opening at $69.69—a 34% premium to its $52 IPO price—boosting its market capitalization to $5.6 billion. Shares remained up over 30% in early trading.
The Israel-based brokerage sold nearly 6 million shares at $52 apiece, above its projected $46–$50 range, while existing investors offloaded an additional 6 million shares. At the IPO price, eToro’s valuation stood at approximately $4.2 billion.
The listing is seen as a gauge of renewed IPO market interest following a prolonged slowdown. Some investors had anticipated a rebound under a potential Trump administration, though tariff concerns later led many companies to delay offerings.
CEO Yoni Assia cited improving market conditions, including stabilizing volatility (VIX), as key factors in eToro’s decision to proceed. The company had initially planned a SPAC merger in 2021 (valuing it at over $10 billion) but shelved the move during the 2022 market downturn.
Competitors Also Testing IPO Market
The debut coincides with fintech firm Chime filing its SEC prospectus and Hinge Health launching its IPO roadshow, targeting $437 million.
Financial Performance and Crypto Focus
Founded in 2007, eToro generates revenue through trading fees and ancillary services. Net income surged from $15.3 million in 2023 to $192.4 million in 2024. Cryptocurrencies have become a significant revenue driver, contributing 25% of net trading income in 2024 (up from 10% in 2023), though crypto’s share of Q1 2024 trading commissions dipped to 37% (from 43% YoY).
Ownership Structure
Post-IPO, Spark Capital remains the largest outside investor (14%), followed by BRM Group (8.7%). CEO Yoni Assia holds a 9.3% stake.