eToro’s 2024 Profits Soared 13x, with Crypto Contributing 38% of Commission Income

eToro has collected a total commission of $931 million by the end of 2024, a yearly rise of 45.6 per cent, according to the latest initial public offering (IPO) prospectus filed by the Israeli fintech yesterday (Monday) with the Securities and Exchange Commission (SEC). 38 per cent of that total figure came from cryptocurrency trading, while another 38 came from equities trading. Commodities contributed 20 per cent, while currencies only 4 per cent.

For comparison, the company's commission income in 2023 came in at $639 million, while it was at $632 million in 2022. The fourth quarter of 2024, when Bitcoin's value surpassed $100,000, brought in the highest quarterly commission at $303 million.

Pushing Profits Higher

The net profit of the Israeli company also sharply increased to $192 million in 2024, compared to $15.3 million in 2023 and a loss of $21 million in 2022.

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Furthermore, eToro had approximately 3.5 million funded accounts, up 14 per cent year-on-year. Assets under administration were $16.6 billion up 73 per cent year-on-year.

The Ambition to Go Public

The Israeli company filed the prospectus as it prepares to list its shares on the Nasdaq under the ticker ETOR.

Although eToro did not disclose the valuation it is seeking with the IPO, the revenue and profits indicate that it might be aiming for a valuation of about $5 billion, which was also revealed in earlier media reports. According to Globes, eToro is seeking to raise $300–400 million at a pre-money valuation of $4.5 billion and has already met with multiple investors in recent weeks, with strong interest in the offering.

Interestingly, this would not be eToro's first attempt to go public. The company planned a $10.4 billion SPAC merger in 2021 but discarded the initiative, reportedly due to “challenging market conditions.” It later raised $250 million at a valuation of $3.5 billion in 2023.

Last year, the UK unit of eToro also settled charges with the SEC for operating as an unregistered broker and unregistered clearing agency, paying $1.5 million. The company further agreed to limit crypto trading in the country to only Bitcoin, Bitcoin Cash, and Ether.