Despite tariff-induced market volatility dimming IPO expecations, eToro closed its first trading day at $67 a share—29% above its public offering price of $52.
The company’s IPO shows that despite some volatility, there’s still energy around digital asset startups going public, according to Rob Hadick, general partner at the crypto-focused VC Dragonfly Capital. “EToro is the way public market investors can express their bullishness on the space,” he added.
The Israeli-based stock and cryptocurrency trading company cashed in on investor excitement with an upsized IPO that raised $620 million. The stock opened on the Nasdaq at $69.69 a share, a 34% premium on its IPO price. The IPO valued the company at $4.2 billion, an increase from when it raised $250 million in 2023 from SoftBank’s Vision Fund 2 and Spark Capital at a $3.5 billion valuation.
“The market has been screaming for liquidity,” said Nigel Morris, co-founder and managing partner at the fintech-focused QED Investors. “There is a whole generation of fintechs that are at escape velocity, growing substantially, and an endorsement like this is a nice shot in the arm for the fintech community.”
The fintech company was buoyed by strong financials in its initial SEC filing, reporting income growth from a net loss of $215 million in 2022 to a profit of $192 million in 2024.
EToro’s growth comes in part from a jump in commission fees from crypto trading, which made up 38% of the company’s commission fees in 2024, up from 17% the year before.
Founded in 2007, eToro enables users to trade stocks and cryptocurrencies, akin to competitor products like Robinhood. Long reported to have IPO ambitions, the fintech company attempted to go public via a SPAC merger in 2021, backed by banking entrepreneur Betsy Cohen. Just a year later, both parties called off the arrangement amid the market downturn.
EToro’s sudden pull on the IPO trigger came as a surprise as the Trump administration’s new tariffs last month sent the markets into a tailspin. The company, alongside others like Klarna and StubHub, decided to hold off.
“The backlog of companies right now is pretty robust,” said PitchBook fintech analyst Rudy Yang. Timing is the real question.
The exit environment for retail fintech startups has been muted since 2022, though it’s showing signs of a comeback, according to PitchBook data. In Q1, $1.6 billion was generated in exit value, a 200% increase year-over-year.
Chime, the venture-backed neobank, just joined the ranks of public market candidates, filing its IPO prospectus on Tuesday.
“For the past three years, you have a ton of people training for a marathon, and the marathon keeps getting postponed and now you have all these people who are super fit,” said Yang. “They’re all just waiting at the starting line ready to go.”
Featured image by Drew Sanders/PitchBook News
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