Israel-based trading platform eToro has taken a step towards a United States initial public offering (IPO) this year, with a potential valuation of over $5 billion. According to FINANCIAL TIMES, the platform submitted its confidential filing to the U.S. SEC, paving the way for a possible listing on the New York Stock Exchange (NYSE) as early as the second quarter.
eToro Files for U.S. IPO
The crypto platform made this move in anticipation of more relaxed regulations in the U.S. financial markets, especially with Donald Trump’s upcoming administration. It has reportedly hired investment banks such as Goldman Sachs, Jefferies, and UBS to facilitate the IPO process. If successful, this would mark a significant milestone for the company.
eToro’s confidential filing with the SEC allows the company to proceed with its IPO plans without publicly disclosing its financial information. This approach has become increasingly popular among companies seeking to list on U.S. stock exchanges.
Even though the exchange’s largest market is the United Kingdom, it decided to list in the U.S. instead. According to its CEO, Yoni Assia, a U.S. listing will provide access to a broader investor base and deeper liquidity. Notably, the U.K. market has struggled to attract high-profile listings. Assia believes that a U.S. presence will be more beneficial for its global clients.
Not the First Attempt
Founded in 2007, eToro allows customers to trade assets such as stocks and crypto. The platform has managed $11.3 billion of customer assets across 3 million accounts. Its valuation has fluctuated since the first attempt to go public in 2021 through a $10.4 billion deal with a blank cheque company.
That deal was not finalized, and eToro’s valuation dropped to $3.5 billion in a 2023 funding round. However, the company is now poised to exceed its previous valuation, with estimates suggesting it could reach over $5 billion in its upcoming IPO. As eToro prepares for its U.S. IPO, investors and industry observers will closely watch its progress.
Meanwhile, Bithumb, a South Korean crypto exchange, is also exploring a potential listing on the U.S. Nasdaq stock exchange through an IPO. The exchange has appointed Samsung Securities as the lead manager for the listing. It intends to initiate the offering in the second half of this year.
