After months of speculation, Israeli fintech company eToro has officially filed a confidential prospectus for an initial public offering (IPO) on Wall Street. While the company has not disclosed financial details, industry estimates suggest it is aiming for a valuation of at least $5 billion. eToro stated that further details would only be provided once the U.S. Securities and Exchange Commission (SEC) approves its filing.
This move marks eToro’s second attempt at going public. In 2021, the company planned to merge with a special purpose acquisition company (SPAC) in a deal valuing it at over $10 billion. However, regulatory challenges—mainly concerning its Bitcoin trading activities—delayed discussions with the SEC. As market conditions worsened with the high-tech sector downturn, eToro abandoned the SPAC deal. Now, with Bitcoin’s resurgence following Donald Trump’s election victory, the company is renewing its IPO efforts.
Expansion and Financial Standing
Founded in 2007 by CEO Yoni Assia and his brother Ronen Assia, eToro has grown into a leading social trading platform. Since canceling its previous IPO plans, the company raised $250 million in a 2023 private funding round at a valuation of $3.5 billion. Amid market shifts, eToro also reduced its workforce and now employs approximately 1,700 people, with about 1,000 based in Israel.
Beyond its IPO plans, eToro has been expanding its global presence. In September 2023, it acquired Australian investment app Spaceship for around $55 million, further strengthening its position in the Asia-Pacific market.
Regulatory Challenges and Market Outlook
Despite its growth, eToro has faced regulatory scrutiny. In the same month as its Spaceship acquisition, the company settled charges with the SEC, agreeing to pay a $1.5 million fine. The regulator alleged that eToro operated as an unregistered broker and clearing agency in the U.S., allowing customers to trade crypto assets classified as securities without proper federal registration. While eToro neither admitted nor denied the allegations, the settlement’s restrictions apply only to its U.S. operations.
As the company pushes forward with its IPO plans, market conditions and regulatory approvals will play a crucial role in determining the success of its Wall Street debut.
