eToro “Evaluates Market Conditions” as Tariff Woes Shadow IPO Craze

eToro has paused its preparations for an upcoming public listing on Nasdaq as President Donald Trump’s reciprocal tariffs wiped out $6.6 trillion in two sessions, Bloomberg and Axios reported. However, according to industry sources, the company has not altered its plans to go public in Q2 this year. Instead, it will continue to evaluate market conditions given the recent market volatility.

Volatility Sparks IPO Concerns

President Trump’s tariffs last week caused major disruption to the global stock market. While the S&P 500 had been trading at an all-time high last February, the index lost almost 10.5 per cent in the last two trading sessions, Thursday and Friday. Robinhood, seen as a close competitor to eToro, lost about 23 per cent of its value since Wednesday.

eToro, headquartered in Israel, filed its F-1 prospectus with the Securities and Exchange Commission (SEC) last week as it prepares to list its shares on Nasdaq under the ticker ETOR.

Although eToro did not disclose the valuation it is seeking with the IPO, Globes reported that the company is looking to raise $300–400 million at a pre-money valuation of $4.5 billion. It has already met with several investors in recent weeks, with strong interest in the offering.

This is not eToro’s first attempt to go public. In 2021, the company planned a $10.4 billion SPAC merger but dropped the plan, reportedly due to “challenging market conditions.” It later raised $250 million in 2023 at a reduced valuation of $3.5 billion.

A Europe-Centric Platform

In its IPO prospectus, the Israeli company revealed that it collected a total commission of $931 million by the end of 2024, a yearly increase of 45.6 per cent. Of this, 38 per cent came from cryptocurrency trading. Net profit also rose sharply to $192 million in 2024, compared to $15.3 million in 2023 and a loss of $21 million in 2022.

Interestingly, 70 per cent of funded client accounts on eToro are based in Europe and the UK, while 16 per cent are in the Asia-Pacific region. The share of American accounts on the platform stands at only 10 per cent.