EToro working on potential US listing - report

(Sharecast News) - EToro is reportedly working with Goldman Sachs on a potential initial public offering in the US. Bloomberg cited people familiar with the matter as saying that the trading and investment platform is considering going public as soon as the second quarter, though that timeline is subject to change.

The company has said it could seek a valuation in a listing above the $3.5bn figure it achieved in a private funding round last year.

Details of the offering including timing could change and more banks may be added to the line-up, sources told Bloomberg. EToro and Goldman Sachs declined to comment to Bloomberg.

A listing would come as enthusiasm for the cryptoassets eToro users can trade on its platform reaches new heights, on the heels of US President-elect Donald Trump picking a crypto-friendly businessman to succeed the outgoing chairman of the US Securities and Exchange Commission.

The move could open the door to more crypto-related IPOs and other offerings, and sent the price of Bitcoin surging past $100,000.

The company's US arm, EToro USA LLC, agreed in September to pay $1.5m and to restrict the cryptocurrencies on its platform for US users, 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 $250m funding round that valued the company at $3.5bn. Its investors include ION Group, SoftBank Vision Fund II and Velvet Sea Ventures.

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, according to a recent statement.

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