eToro files US IPO, eyes $5b market valuation

eToro could list in New York as soon as the second quarter of the year after privately filing for an IPO in the United States.

Crypto exchange and stock trading provider eToro has confidentially submitted initial public offering documents to the Securities and Exchange Commission, according to internal sources. quoted by the Financial Times on January 16.

According to the report, the eToro IPO is backed by industry giants such as Goldman Sachs, Jefferies, and UBS as distribution partners. The news confirmed an earlier report published in early December.

Additionally, people familiar with the matter said the company could list its shares in New York by the second quarter of 2025. eToro is targeting a $5 billion valuation for its IPO, an increase from its capitalization stock market of 3.5 billion dollars declared in 2023.

eToro’s path to a US IPO

Plans for an IPO have been circulating since March 2021, when the Israel-based crypto and securities firm sought to go public under a special purpose acquisition company agreement with FinTech Acquisition Corp. V, a company backed by banking industry veteran Betsy Cohen.

The SPAC merger, which targeted a $10.4 billion valuation, ultimately fell through during the 2022 bear market. At the time, eToro said the SEC rejected its bid.

Circle also attempted to go public via a SPAC deal with Concord Acquisition Corp. However, this deal also fell through due to late responses from the SEC. Circle, the issuer of the second largest crypto stablecoin (USDC), also filed an IPO confidentially with the SEC. The titan of digital payments moved its headquarters in New York pending SEC approval.

If successful, eToro would join an exclusive list of crypto-related companies listed on the New York stock exchange. This includes several Bitcoin (BTC) miners, such as Marathon Digital, as well as the acquisition of crypto exchange giant Coinbase and Trump Media target Bakkt.

The company agreed to pay $1.5 million in fines to settle allegations of securities violations imposed by the US SEC.