eToro reportedly considering a $5 billion IPO in 2021

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eToro, an Israeli-British cryptocurrency trading and brokerage company, is reportedly considering an initial public offering (IPO) next year, according to a report from Calcalist, a newspaper in Israel.

The report indicated that eToro is in discussions with Goldman Sachs regarding its plan to go public. It is also reportedly considering pursuing a merger with a Special Purpose Acquisition Company (SPACs) to speed up its “entry into the Wall Street trading.”

“eToro is targeting an IPO in the second quarter of 2021 after doubling its revenue to $500 million and gaining five million new customers in 2020x. It is currently in talks with investment bank Goldman Sachs regarding leading the IPO,” Calcalist reported.

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The Israeli-British cryptocurrency trading and brokerage company’s valuation could be around $5 billion in an IPO.

eToro is popular and profitable

The newspaper noted that eToro is profitable. This year, its revenue doubled to $500 million. An institutional investor acquired more than $50 million worth of eToro shares in the secondary market, bringing its valuation to $2.5 billion.

eToro generates its revenue from stocks, CFDs, forex ETFs and precious metals.  It made a decent amount of money from cryptocurrency targeting the U.S. market which it entered in May 2018.

Additionally, since the beginning of this year, eToro attracted five million new customers. It is allowing traders on its platform to replicate the trades of top traders using its CopyTrader technology. The strategy made its platform popular among millennials. 

Since its founding, eToro raised $273 million funding from a number of investors including Bracket Capital, China Minsheng Financial Holdings, Chemi Peres, and Ping An Insurance.

The Israeli-British cryptocurrency trading and brokerage company did not release any official announcement regarding its IPO plan. In response to inquiries about the report, its spokesperson said., “EToro does not comment on market rumors.”

The news about eToro’s supposed IPO plan comes following an announcement from Coinbase that it is preparing for an IPO in 2021. The U.S.-based cryptocurrency exchange confidentially submitted its Form S-1 platform with the SEC.

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