eToro Prices Shares for Wall Street Listing, But Crypto Regulatory Risks May Limit US Operations

Key Takeaways

• eToro is preparing for a U.S. IPO to raise $500 million, with an expected valuation of $4 billion.
• The company highlighted significant risks related to digital asset regulations in the U.S.
• The exchange was not the only company that postponed its IPO plan due to Donald Trump’s tariffs.

eToro Group Ltd. and some shareholders aim to raise $500 million in a U.S. IPO, after pausing earlier listing plans due to tariff-related volatility.

However, eToro’s road to Wall Street has been anything but smooth, with hurdles ranging from shifting U.S. cryptocurrency regulations to international sanctions impacting its major investors.

eToro Announces IPO Pricing

eToro has priced its IPO at $52 per share, raising $620 million by selling 11.92 million Class A common shares.

The offering, initially set at 10 million shares with a price range of $46-50, was upsized due to strong demand.

The IPO includes 5.96 million new shares from eToro and an equal number from existing shareholders, valuing the company at $4.26 billion.

eToro shares will begin trading today on the Nasdaq Global Select Market under the ticker ETOR, with closing expected on May 15.

Underwriters have a 30-day option to buy an additional 1.79 million shares. Goldman Sachs, Jefferies, UBS, and Citigroup are the lead book-runners, and several other banks are additional managers.

eToro Filed for a Wall Street IPO

Israeli trading platform eToro is preparing to launch a U.S. IPO, offering 10 million shares priced between $46 and $50, according to a filing with the SEC .

At the upper end, the deal would give the company a valuation nearing $4 billion.

The IPO will be underwritten by Goldman Sachs, Jefferies, UBS, and Citigroup. Shares will debut on the Nasdaq under the ticker ETOR, with pricing expected next week.

Half of the 5 million shares are being issued directly by eToro. The remaining half will come from existing investors and insiders, including Spark Capital, BRM Group, Andalusian Private Capital, and CM Equities SP, as well as co-founder and CEO Yoni Assia and his brother, executive director Ronen Assia.

BlackRock-managed funds have expressed preliminary interest in buying up to $100 million of the offering. Additionally, 500,000 shares are earmarked for a directed share program.

eToro had previously aimed to go public via a SPAC merger that would have valued it at $10.4 billion. In 2024, the exchange reported a net contribution of $787 million and net income of $192 million, up significantly from 2023’s $557 million and $15.3 million.

Its most recent funding round in 2023 pegged its value at $3.5 billion, backed by investors like ION Group and SoftBank Vision Fund 2.

U.S. Crypto Activity May Be Restricted

In its regulatory filing, eToro highlighted digital assets as a key area of operational risk. It noted that varying cryptocurrency laws across U.S. states could limit its ability to do business in certain regions.

Additionally, compliance with the European Union’s cryptoasset regulations is expected to drive ongoing, substantial costs.

Furthermore, in September last year, eToro promised to withdraw most of its crypto asset offerings in the U.S. and pay a $1.5 million penalty following a settlement with the SEC.

The regulator alleged eToro operated as an unregistered broker and clearing agency by offering specific cryptocurrencies as securities since at least 2020.

To comply, the exchange had to limit U.S. offerings to Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH). The firm agreed to the settlement without admitting or denying the findings.

Finally, the filing also disclosed that international sanctions are impacting share distribution.

Specifically, SBT Venture Fund I—linked to Russia‘s Sberbank PJSC and holding over 6% of eToro’s Class A shares—is currently barred from transferring, voting, or receiving additional shares due to those restrictions.

Other Potential Listings in New York

eToro has already tried to go public via an SPAC merger and an IPO . However, the exchange delayed its initial public offering as Donald Trump’s tariffs and the company’s valuation hit the market.

But the platform wasn’t the only company postponing the IPO due to the trade war, and other firms may soon follow suit in relaunching their listing plans.

According to Bloomberg , StubHub Holdings Inc. and Klarna Bank have paused IPO plans. Adtech firm MNTN Inc. and insurer Ategrity Specialty Holdings have also delayed offerings.

Among those on hold is also Medline Industries Inc., the medical supply company acquired in a $34 billion buyout by Blackstone, Carlyle, and Hellman & Friedman in 2021, which was eyeing a $50 billion valuation.