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Israel’s eToro to file $5 Billion Initial Public Offering

Israel's eToro to file $5 Billion Initial Public Offering

eToro, an Israel-based brokerage, may file for an IPO, according to an article from Calcalist. eToro is in discussions with Goldman Sachs to launch an IPO at a valuation of $5 billion. The firm intends to achieve the initial offering through the second quarter of 2021. Further, the company is contemplating an alliance with a special purpose acquisition company previously listed on Nasdaq.

The news of the IPO arises after eToro doubled its revenue to $500 million in 2020. It gained 5 million new consumers during the year. Additionally, the company spiked in valuation to “Unicorn” status when it was known that a U.S. based institutional investor bought $50 million worth of eToro shares at 2.5 billion from the secondary market.

Is eToro IPO news speculative?

Nevertheless, reports about the IPO are still uncertain. Moreover, eToro hasn’t revealed any information nor has officially announced the news itself. The report appears when the demand for eToro’s products and services are rising, particularly with the increased retail demand since the beginning of the Covid-19. In accordance with the latest figures, the platform executes above 15 million trades on-board.

Established in 2017, eToro is recognized as a social trading platform. It enables traders to imitate the strategies of experts. Currently, eToro is the world’s leading social trading network, with more than a total of 17 million registered users from 140+ counties. Recently, the company invested heavily to expand its product line. Its offerings include all popular asset classes, including cryptocurrencies. Commencing with $1.7 million seed funding, eToro concluded five funding rounds. Thus, raising $162 million in total. The most advanced funding round in 2018 alone generated $100 million with a valuation of $800 million.

Furthermore, the American stock brokerage disrupter, Robinhood, is preparing to go public next year with a valuation of $20 billion. Summing it up, the firm’s rumored IPO is interesting news for the crypto industry owing to the company’s focus on the asset class, given that Bitcoin is surging with a continuous momentum.

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