eToro Teams Up with Goldman Sachs for US IPO: What to Expect in 2024

As per the latest Bloomberg report, trading platform EToro is reportedly working with Goldman Sachs on a potential initial public offering in the US.

The trading and investment platform plans to go public in Q2, potentially seeking a valuation above the $3.5 billion it raised in a private funding round last year, although the timeline is subject to change. However, the details of the offering including timing could change and more banks may be added to the lineup, people familiar with the matter said. 

Growth Amid Crypto Enthusiasm

Founded in 2007, eToro offers a platform that lets users trade and follow top investors in assets including stocks and cryptocurrencies. It has more than 38 million registered users from 75 countries. 

eToro’s listing could be a response to increased enthusiasm for cryptoassets on its platform, following US President-elect Donald Trump’s selection of a crypto-friendly businessman to succeed the outgoing SEC chairman. Many believe this appointment could lead to more opportunities for cryptocurrencies, including the possibility of new crypto-related Initial Public Offerings (IPOs) and other financial offerings. As a result, the price of Bitcoin has soared, even crossing the $100,000 mark for the first time. 

• Also Read :
•   Coinbase Reveals FDIC ‘Pause Letters’ Exposing Operation Chokepoint 2.0’s Impact on Crypto
• ,

Legal Hurdles and Previous Public Listing Attempts

Notably, the company’s US arm, EToro USA LLC, agreed in September to pay $1.5 million and to restrict US users access to the cryptocurrencies on its platform, to settle allegations that it operated as an unregistered broker and clearing agency. The platform entered into a cease-and-desist order without admitting or denying the allegations.

Last year, the firm completed a $250 million funding round that valued the company at $3.5 billion. Its investors include ION Group, SoftBank Vision Fund II and Velvet Sea Ventures.

EToro previously attempted to go public through a merger at a $10.4 billion valuation with a special purpose acquisition company led by serial dealmaker Betsy Cohen. However, the parties mutually agreed to terminate the deal in 2022.