eToro, a leading social trading platform, has quietly filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC). This confidential filing indicates that the company has submitted its initial registration documents to the SEC but has not made them public yet.
The filing allows eToro to receive feedback from the SEC and make any required adjustments before officially revealing its IPO plans.
The Israeli-based platform, which facilitates both cryptocurrency and stock trading, is reportedly planning to go public in New York as early as the second quarter of 2025, depending on the success of its IPO. eToro aims for a valuation of $5 billion, a significant increase from its $3.5 billion market cap in 2023.
To help with this process, eToro has partnered with major investment banks including Goldman Sachs, Jefferies, and UBS, who will assist in navigating the IPO journey.
This move is not eToro’s first attempt to go public in the U.S. Back in 2021, the company entered into a Special Purpose Acquisition Company (SPAC) deal with FinTech Acquisition Corp. V. at a valuation of $10.4 billion. However, this deal fell apart due to the market downturn in 2022, and the SEC did not approve the plan.
Many other crypto companies have also attempted to go public via SPAC deals, but most have been unsuccessful. For instance, in July 2021, Circle, the issuer of USDC, filed for an IPO through a SPAC but ultimately abandoned the plan because it didn’t meet the SEC’s criteria.
This potential deal could have valued Circle at $9 billion. Similarly, crypto miner Prime Blockchain canceled its plans to go public via SPAC in 2022.
If eToro’s IPO succeeds, it would join other notable crypto companies such as Coinbase and Bakkt in going public in the U.S. Additionally, several Bitcoin miners, including Marathon Digital, are also listed on U.S. exchanges.
