eToro valued at $5.6bn in bumper Nasdaq debut for trading platform

Bengaluru — Robinhood-rival eToro secured a valuation of $5.64bn after its shares surged 34% in their Nasdaq debut on Wednesday, becoming the first US IPO to make it to market after tariff uncertainty delayed several planned launches.

The Israeli company’s stock opened at $69.69 apiece, compared with the IPO price of $52, underscoring strong market interest for platforms enabling speculation and trading by retail investors.

eToro and some existing stockholders upsized their offering on Tuesday to sell 11.92m shares above its marketed price range of $46 to $50 a share, raising $620m.

It was the biggest offering of an Israeli fintech on a US exchange since the July 2021 IPO of Riskified, according to Dealogic data.

The solid first-day reaction could reignite listing plans of companies such as Klarna and StubHub that had put off their roadshows after US President Donald Trump’s flip-flop on tariffs scuttled financial markets worldwide.

Digital banking fintech Chime filed for a Nasdaq listing on Tuesday in another closely watched event for signs of a recovery in IPO markets.

eToro arrives on the Nasdaq two days after Coinbase Global became the first digital asset player to be included in the benchmark S&P 500 index — a landmark moment of legitimacy for the crypto sector that is expected to benefit from lighter regulations under President Trump.

eToro’s launch marks a 61% appreciation from the $3.5bn valuation secured in its 2023 funding round, which came months after its agreement to list via a merger with Betsy Cohen-backed Fintech Acquisition fell apart in 2022.

Founded in 2007, eToro allows users to collaborate on strategies within the app or mimic top investors to trade in stocks and cryptocurrencies. According to the company, 55% of its funded accounts engaged socially on the platform in 2023.

eToro launched in the US in 2019, where competitor RobinHood has been making a deeper crypto push to evolve beyond stock trading. Robinhood users’ access in the EU is limited to trading cryptocurrencies.

The Israeli trading platform’s revenue from facilitating trades of crypto assets almost quadrupled to $12.15bn in 2024 from the previous year.

Asset manager BlackRock, which provides five core portfolios to eToro’s “Smart Portfolio” range, had indicated interest in buying up to $100m worth of shares in the offering.

Reuters