Cryptocurrency and stock trading platform eToro experiences significant expansion, reaching a market capitalization of $5.4 billion following its Nasdaq debut.
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eToro's Stock Soars Post-Nasdaq Debut at $67
Shares of trading app eToro skyrocketed 29% on its Nasdaq debut, ending at $67, according to Nasdaq's webpage. This grand entrance follows the firm's sale of 6 million shares at $52 each, resulting in a $310 million raise through its initial public offering.
Check Out SceneThe Israel-based company, founded in 2007, revealed its digital asset revenue last year, jumping from $3.4 billion in 2023 to a whopping $12.4 billion in 2024, as per the amended registration statement filed with the Securities and Exchange Commission in mid-March.
The boom in revenue is a testament to the more welcoming environment for crypto-related firms this year. Alongside eToro, crypto exchange Kraken and stablecoin issuer Circle have expressed a desire to go public. This shift in attitude was once unimaginable, given the intense scrutiny from U.S. regulators.
EToro earns income through user fees on certain trades and management fees tied to digital asset transfers on its platform. Additionally, it earns from crypto wallet services.
Digging into the DetailsWhile the amended registration statement does not specify the exact cryptocurrencies offered by eToro in the U.S., following a $1.5 million settlement with the SEC last year, crypto enthusiasts can trade three digital assets: Bitcoin, Ethereum, and Bitcoin Cash.
The SEC accused eToro of operating an unregistered broker and clearing agency in 2023. Yoni Assia, co-founder and CEO of eToro, confirmed that the settlement would have minor consequences for the global business and noted that eToro's services are available in around 70 countries.
much like crypto exchange Coinbase, eToro users can stake various cryptocurrencies, which refers to the process of locking up cryptocurrencies to validate transactions for rewards. However, this service is currently unavailable to users in the U.S.
eToro temporarily halted crypto trading in 2023, following the SEC's intense scrutiny of the industry, which led to high-profile lawsuits against Coinbase and crypto exchange Binance. These cases, centered around unregistered securities, have since been dropped.
James Rubin, Editor-in-Chief
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- Investors are showing keen interest in eToro's stablecoin offerings, eager to capitalize on its success following its Nasdaq debut.
- With the surge in revenue, eToro joins ranks with other crypto firms like Kraken and Circle, expressing intentions for Initial Public Offerings (IPOs).
- Apart from Bitcoin (BTC), Ethereum (ETH), and Bitcoin Cash, the exact cryptocurrencies offered by eToro on its platform in the U.S. are yet to be specified.
- eToro's income streams consist of user fees, management fees for digital asset transfers, and revenue from crypto wallet services.
- Staking multiple cryptocurrencies is possible for eToro users, similar to crypto exchange Coinbase, but this feature remains unavailable for users in the U.S. due to regulatory concerns.
- The technology sector, including finance and crypto trading, continues to evolve as digital asset platforms like eToro pioneer new avenues for investing.
- Yoni Assia, the co-founder and CEO of eToro, confirmed that the $1.5 million settlement with the SEC would have minor repercussions for their global business operations.
- Due to the ongoing regulatory scrutiny in the crypto industry, eToro temporarily halted crypto trading in the past, but high-profile lawsuits against rivals like Coinbase and Binance have since been dropped.
