eToro files for an IPO in the United States

eToro filed for an initial public offering in the United States on Monday, according to a regulatory document submitted to the U.S. Securities and Exchange Commission.

The filing revealed that the Israel-based crypto and stock trading platform brought in $12.6 billion in total revenue and $192 million in net income for 2024. In 2023, it reported $3.89 billion in revenue and just $15.3 million in profit. The numbers show a massive increase year over year.

The company hasn’t yet said how much it plans to raise or what the share price will be. That information will come in a later filing when eToro is ready to launch the actual sale.

The IPO is being led by Goldman Sachs, Jefferies, UBS, and Citigroup. Both the company and some of its shareholders are planning to sell shares as part of the offering.

eToro shows profit growth as crypto makes a comeback under Trump

About 96% of eToro’s revenue in 2024 came from crypto, according to the filing. Crypto prices shot up last year after Donald Trump returned to the White House and took a pro-crypto stance. That policy change helped platforms like eToro, which lets users buy and sell crypto along with stocks, see a surge in demand.

Founded in 2007, eToro runs a trading app that allows users to follow and copy popular traders. It has more than 38 million users across 75 countries, based on a recent company statement. The company first tried to go public in 2021 through a $10.4 billion merger with a special purpose acquisition company backed by Betsy Cohen, but the deal was canceled in 2022.

Last year, eToro raised $250 million in a funding round that gave it a new valuation of $3.5 billion. That round included investors like ION Group, SoftBank Vision Fund II, and Velvet Sea Ventures.

In the U.S., eToro ran into problems with regulators. In September 2024, the company’s American division, eToro USA LLC, agreed to pay a $1.5 million fine and restrict which crypto assets it offered to U.S. customers. The penalty was part of a settlement with the SEC, which accused the platform of operating as an unregistered broker and clearing agency. The company signed a cease-and-desist order but didn’t admit or deny the charges.

The filing didn’t include any predictions for 2025 or forward-looking statements. It focused only on past performance. That leaves investors to decide whether the 2024 surge can last, especially since the company is so heavily tied to crypto markets, which are still volatile even under favorable policies.

eToro didn’t say how many shares it would issue or what valuation it’s targeting now. But the last known private valuation was $3.5 billion, which is a steep drop from the canceled SPAC deal’s $10.4 billion figure. Whether the IPO beats or matches that number will depend on how crypto performs in early 2025 and how much investors believe in the company’s long-term growth.

In a related development, Kraken, another crypto exchange, is also planning to go public, though a bit later than eToro. According to its own SEC filing, Kraken is working with Goldman Sachs and JPMorgan Chase to raise up to $1 billion in debt ahead of an expected IPO in early 2026.

The debt won’t be used to run daily operations. Instead, it will help Kraken expand before it enters public markets. One of the unnamed participants in the talks told the SEC that the final amount could be as low as $200 million, depending on how the talks go. The company is also thinking about raising equity along with the debt, but nothing has been finalized yet. Terms like the structure and total amount may change in the coming months.

In a public statement, Kraken said, “We are always exploring strategic paths toward Kraken’s Mission: accelerating the global adoption of crypto. We remain fully focused on investing in this goal.”

Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot