According to a recent Bloomberg report, the trading and investment platform eToro is in discussions with Goldman Sachs Group Inc. regarding a potential initial public offering (IPO) in the United States.
Sources familiar with the matter indicate that eToro is considering going public as early as the second quarter of 2025, although this timeline remains flexible and subject to change.
eToro Aims For $3.5 Billion Valuation In Upcoming IPO
Per the report, eToro aims for a valuation exceeding the $3.5 billion it achieved during a private funding round last year.
While specific details regarding the initial public offering, including timing and potential underwriters, have yet to be finalized, additional banks may likely join the underwriting team as preparations progress.
This move towards an IPO comes at a time of heightened enthusiasm for cryptocurrency assets, particularly following the recent appointment of Paul Atkins, a crypto-friendly successor to the outgoing chair of the US Securities and Exchange Commission (SEC) by President-elect Donald Trump.
In addition, late Thursday, the 47th President of the United States announced his decision to appoint David Sacks as the White House’s new “Crypto Czar.” This move aims to bridge the gap between the Office of the President and regulators further and ensure the industry’s continued growth.
This change in leadership could pave the way for greater regulatory clarity and encourage more crypto-related offerings, such as ETFs that invest in XRP, Solana, Hedera, and Litecoin.
Regulatory Challenges
eToro USA LLC, the company’s American subsidiary, faced regulatory scrutiny from authorities last year, agreeing to pay a $1.5 million settlement for operating as an “unregistered broker and clearing agency.”
As part of this settlement, eToro also restricted the cryptocurrencies available to US users, entering a cease-and-desist order without admitting or denying the allegations.
Established in 2007, eToro has developed a platform allowing users to trade and follow top investors across various asset classes, including stocks and cryptocurrencies. The platform boasts over 38 million registered users from 75 countries, reflecting its global reach and popularity.
In 2022, eToro attempted to go public through a merger with a special purpose acquisition company (SPAC) led by Betsy Cohen, aiming for a valuation of $10.4 billion. However, the parties agreed to terminate this deal, leaving eToro to pursue alternative pathways to an IPO.
The largest digital asset on the market, Bitcoin (BTC), regained its bullish momentum on Thursday, reaching a new all-time high of $104,000. However, the cryptocurrency has experienced increased volatility as it fell as low as $91,000 on the same day.
In recent hours, however, it has managed to inch closer to the $100,000 mark once again, currently consolidating at $98,940. With this retracement, BTC is down 2.4% for the 24 hours.
Featured image from DALL-E, chart from TradingView.com
