Trading Platform Closes First Day with $5.5B Valuation Amid Rebounding IPO Market
Crypto and stock trading platform eToro made a strong entrance on the Nasdaq on May 14, closing its first day of public trading with a 28.9% gain, after unexpectedly raising the size and pricing of its initial public offering (IPO) the day before.
Shares of eToro Group Ltd (ETOR) opened at $52 and finished the day at $67, pushing the firm’s market capitalization above $5.5 billion, according to Yahoo Finance. The stock hit an intraday high of $74.26 before settling back and slipping slightly 0.7% in after-hours trading.
“Retail investing is not a fad, but a long-term trend,” said eToro Australia managing director Robert Francis, commenting on the IPO.
IPO Upsized to $620 Million as Demand Surged
On May 13, eToro increased its IPO size to $620 million, surpassing its original goal of $500 million. The company and existing shareholders sold a total of 11.92 million shares, priced above the initial range of $46 to $50 — a bullish signal for investor demand.
Notably, BlackRock-managed funds expressed interest in buying up to $100 million worth of shares at the IPO, according to a May 5 SEC filing.
The offering was led by Goldman Sachs, Jefferies, UBS Investment Bank, and Citigroup.
eToro’s Crypto Business Grows Sharply
eToro’s regulatory filing revealed that 2024 crypto revenues reached $12.1 billion, a significant jump from $3.4 billion in 2023, thanks to robust activity in trading fees and withdrawals.
While crypto accounted for 43% of commission revenue in Q1 2024, that figure is projected to dip to 37% in Q1 2025, indicating a broadening of eToro’s trading base beyond digital assets.
Founded in 2007, eToro originally attempted to go public in 2021 via a SPAC merger at a $10 billion valuation, but canceled the plan in 2022 amid market turmoil from the COVID-19 pandemic and rapid interest rate hikes.
IPO Market Rebounds After Trump’s Tariff Shock
eToro’s successful debut marks a turnaround for U.S. IPOs, which had stalled in April due to market volatility sparked by President Donald Trump’s sweeping tariffs.
The company had confidentially filed for a public offering in January and publicly disclosed plans on March 24, but delayed its listing amid uncertainty following Trump’s “Liberation Day” tariff announcement on April 2.
Now, with risk appetite returning, other crypto-related firms like Kraken and Circle are eyeing public listings. Circle filed with the SEC on April 1, though it temporarily paused plans due to tariff concerns. Meanwhile, Bitwise has predicted other major players — including Figure, Anchorage Digital, and Chainalysis — could go public later this year.
In contrast, Robinhood (HOOD) — eToro’s chief U.S. rival — saw its stock dip 1.9% to $61.39 on May 14, with further after-hours losses of 1.63%.
Final Thoughts: A Bullish Debut Signals Market Optimism for Crypto Equities
eToro’s Nasdaq debut exceeded expectations and delivered strong validation for crypto-focused companies in traditional capital markets. The firm’s surging crypto revenue, combined with rising retail investor activity and waning macro headwinds, paints a positive picture for crypto-aligned IPOs moving forward.
With regulatory clarity improving under the Trump administration and institutional confidence rebounding, eToro’s success may mark the start of a new IPO wave in the blockchain and fintech sectors.
