eToro Eyeing U.S. IPO Backed by Goldman Sachs: Report

eToro, a trading platform based in Israel for stocks and crypto, is set to collaborate with Goldman Sachs. According to a Bloomberg report, the duo is working on actualizing an initial public offering (IPO) in the U.S.

The trading platform could go public in the second quarter of 2025. However, this remains a tentative date for the IPO launch.

Overcoming Regulatory Challenges

Last year, eToro engaged in a private funding round that saw it realize about $3.5 billion valuation. With this planned IPO, it hopes to surpass that level. The trading platform remains in discussion with other partners that could join, including banks.

It is worth mentioning that eToro had serious regulatory issues in the U.S., resulting from allegations of operating as an unregistered broker. However, the Securities and Exchange Commission (SEC) reached a settlement agreement in September 2024.

The agreement saw eToro shelling out $1.5 million to settle charges of operating without registration for its brokerage and clearing services. The trading platform neither admitted nor denied the SEC’s findings but agreed to the entry of a cease-and-desist order. It also complied with the directive to restrict its crypto offerings for the U.S. customer base.

Favorable Climate for Crypto IPOs

The recent IPO move is coming at a significant time in U.S. crypto history. This is partly driven by the decision of President-elect Donald Trump to appoint pro-crypto individuals into key positions. Notably, the next SEC Chair, Paul Atkins, is very crypto-friendly, and his leadership could spur crypto-focused companies to go public.

Following the news of Atkins’ nomination, the broader cryptocurrency ecosystem has reacted with positive sentiments. Bitcoin, the world’s leading digital asset, has historically climbed to $100,000 while the leading altcoin, Ethereum, has also crossed the $4,000 mark. Ethereum last reached that price level in March 2024.

eToro’s Global Reach and Future Prospects

eToro, founded in 2007, provides users with a platform to trade and follow top crypto and stock investors. Its registered user base totals over 38 million spread across 75 countries. These will look forward to further details of the planned IPO in 2025.