Tel Aviv Based ‘eToro’ Prepares for U.S. IPO with a Valuation Target of $5 Billion

Tel Aviv Based ‘eToro’ Prepares for U.S. IPO with a Valuation Target of $5 Billion

Edited by: TJVNews.com

Retail trading platform eToro is reportedly making significant strides toward going public in the United States, aiming for a valuation of $5 billion. According to a report that appeared on Thursday on the PYMNTS.com website, the company has confidentially filed paperwork with the Securities and Exchange Commission (SEC) and could potentially debut on the New York Stock Exchange as early as the second quarter of 2025.

A spokesperson for eToro declined to comment on what they described as “IPO rumors.” However, sources familiar with the matter told the Financial Times that eToro’s decision to list in New York, rather than London, reflects its global strategy and market priorities.

eToro, established in 2007 by Yoni Assia, Ronen Assia, and David Ring, is a social trading and multi-asset investment company headquartered in Tel Aviv, Israel. The platform enables users to trade a variety of financial instruments, including stocks, cryptocurrencies, commodities, and Contracts for Difference (CFDs). As of early 2024, eToro reported having 35.5 million registered users and over 3 million funded accounts, highlighting its significant presence in the global fintech landscape.

eToro’s platform is renowned for its social trading features, allowing users to replicate the trades of experienced investors, thereby democratizing access to financial markets. This “copy trading” functionality has attracted a diverse user base, from novice traders to seasoned investors seeking to diversify their strategies. The company operates under regulatory oversight from several authorities, including the Cyprus Securities Exchange Commission (CySEC) in the European Union, the Financial Conduct Authority (FCA) in the United Kingdom, the Financial Crimes Enforcement Network (FinCEN) in the United States, and the Australian Securities and Investments Commission (ASIC) in Australia.

As eToro’s founder and CEO Yoni Assia explained to the Financial Times last year, listing in New York offers access to a larger and more diversified investor base. “Very few of our global clients would trade U.K. shares,” Assia noted. “Something in the U.S. market creates a pool of both deep liquidity and deep awareness for those assets that are trading in the U.S.”

Demonstrating its commitment to global expansion, eToro acquired Australian fintech company Spaceship in October 2024 for up to $80 million. Spaceship, catering to younger investors with superannuation products, manages approximately $1.5 billion in funds across 200,000 clients. This acquisition aims to strengthen eToro’s presence in the Australian market and serve as a strategic gateway to the broader Asia-Pacific region.

The PYMNTS.com report highlighted that eToro’s decision aligns with a broader trend among startups, which are increasingly avoiding London’s stock exchange due to its recent struggles to attract high-profile IPOs.

eToro’s listing plans emerge at a time of renewed optimism for IPOs, driven by changing market conditions and the pro-business outlook anticipated under the incoming U.S. administration of President Donald Trump. PYMNTS.com reported that the broader markets appear poised for an IPO resurgence, spurred by expectations of lighter regulations, favorable tax policies, and a more business-friendly environment.

This potential revival has encouraged other prominent startups to consider going public in 2025. In addition to eToro, companies such as buy now, pay later (BNPL) firm Klarna, AI cloud company CoreWeave, and FinTech giant Chime are reportedly preparing for their own IPOs.

While eToro’s move is a signal of confidence in the IPO market, it also draws attention to the competitive pressures facing FinTechs. Many companies have opted to remain private longer, a trend that has frustrated investors eager for lucrative public offerings. Yet the PYMNTS.com report indicated that momentum may finally be shifting in favor of IPO-ready FinTechs, particularly as market conditions stabilize and investor appetite grows.

As eToro moves closer to a U.S. listing, its leadership faces the challenge of balancing investor expectations with the realities of a volatile market. The company’s decision to pursue a $5 billion valuation highlights its ambitions to solidify its position as a global trading powerhouse.

eToro’s evolution from a Tel Aviv-based startup to a global fintech leader exemplifies its adaptability and commitment to innovation in the financial services industry. By continually expanding its product offerings and navigating complex regulatory landscapes, eToro strives to maintain its position at the forefront of social trading and multi-asset investment platforms worldwide.