eToro files for US Initial Public Offering

According to the Financial Times, the crypto-friendly trading platform eToro filed for an initial public offering to the United States Security Exchange Commission. The reports indicated the IPO could be valued at $ 5 billion and may expand by listing in New York in the second quarter.

The report also revealed that Goldman Sachs, Jefferies, and UBS were among the top players advising eToro on the IPO. According to a March 2024 Financial Times report, eToro, founded in 2007, manages over $10 billion in customer assets across 33 million accounts. 

In 2023, the company reportedly raised $250 million in a funding round, bringing its brokerage to $3.5 billion. An individual familiar with the company’s floatation plans revealed that with the upcoming IPO, the company is expected to be valued at $5 billion. 

eToro faces hurdles with regulators across the globe 

In September 2024, the eToro stopped trading in most crypto assets after it settled with the U.S. SEC. The decision reportedly stemmed from a lawsuit where the company was charged with operating an unregistered brokerage and clearing agency related to its crypto trading platform.

The SEC announced the brokerage agency had agreed to pay over $1 million to settle the suit. Additionally, the company also settled to trade a limited number of crypto assets in the United States.

The Securities and Exchange Commission in the Philippines also accused the company of trading unregistered securities last year. The regulator emphasized that the platform was not registered under Philippine law and did not have the necessary licenses to operate as a broker-dealer.

The Philippine SEC advised its nationals to exercise caution before investing in unregistered online platforms. It warned that anyone who is found promoting the platforms could face penalties or imprisonment of up to 21 years.