Etoro: $ 620 million at IPO

On his IPO on the US technology exchange Nasdaq, the Israeli Fintech Etoro wants to make a lot of coal today on May 14th: The price of the shares for sale is $ 52, means: With 11.92 million shares, Etoro can be fed up on Wednesday Take $ 620 million And the company valuation at around $ 5 billion. The $ 10.4 billion, which one wanted to reach with a Merger with a Spac a few years ago, will remain unmatched.

The Etoro IPO is also a test for further IPOs from the tech sector: Next, the US-Neobank Chime, the StableCoin editor Circle (USDC) or Health, want other companies such as Revolut.

With an F-1 brochure of March 24, 2025, Etoro Group Ltd. the way for a nasdaq listing under the abbreviation “Come” free. The aim of FinTech, founded in Tel Aviv in 2007, is to “open the global markets”-with a platform that combines brokerage, social network functions and neo-banking. Users can focus shares, ETFs, foreign exchange, raw materials and – in the center Krypto-Assets Act, create smart portfolios or using it CopyTrader Reflect strategies of experienced investors. The company now serves customers in 75 countries and 20 languages.

Explosion of sales by crypto trading

The dynamic explains from a new one Kryptto-Boom 2024: The sales from the sale of crypto-assets to customers gave rise to $ 12.1 billion, while the corresponding procurement costs (Cost of Revenue) rose almost as much ($ 11.8 billion). This remains thin in this segment, but Etoro also benefits from Interest income ($ 197 million) on customer-cash and margin positions.

In the classic business with stocks, raw materials and foreign exchange, the net trading yield moderately set up to $ 329 million (+8 %).

User: small, but wealthy

• Funded Accounts (Verified, with a positive accounting): 3.48 million on 31 December 2024 (plus 0.44 million J/J)

• Assets under Administration: 16,6 Mrd. US-$ (2023: 9,6 Mrd. US-$)

• Trades 2024: 571 million, including 64 million crypto shops

Etoro counts “only” a few million active investors, but emphasizes that long -established cohorts are growing and already strong 36 % der Total Commission delivery .

Global markets and expansion

Europe and Great Britain remain core regions, but Etoro is expanding aggressively:

• Asia-Pacific: Takeover of the Australian investment app Spaceship (Nov 2024) should increase market shares in Australia

• USA: First crypto since 2019, now also shares, ETFs and options

• Middle East: Launch in the VAE at the end of 2023, more Mena countries planned

• Singapore: In-principle license of the MAS, activation 2025 planned

Main risks in front of the IPO

1. Regulatory patchwork -Etoro is under the supervision of numerous authorities (EU-Mifid, FCA, ASIC, FINRA UA). Changes in the law or license requirements could limit products or increase costs

2. Crypto volatility & balance of balance sheet -sales growth is strongly based on fluctuating crypto activities; Etoro acts as a principal and bears price and liquidity risks, especially in derivative businesses

3. Market fluctuations -abrupt course movements (“Liquidity Vacuum”) can lead to margin requirements or hedging strategies cannot be adjusted quickly enough

4. Competition -Numerous players fight for the same customer group, from zero-fairy brokers to crypto exchanges; Price pressure and marketing costs remain high

5. Cyber ​​and fraud risks – Attacks on wallets or data can lead to reputation damage and regulatory punishments

Conclusion

Etoro goes with one impressive leap And solidly win the stock exchange. That Over 95 % The 2024 revenue comes from crypto shops, but makes the business model susceptible to regulatory interventions and market cycles. Anyone who relies on Etoro invests in one Global social trading pattern -but also in the continued existence of the crypto hype and the skill of management to assert itself in a rapidly changing regulatory environment.