eToro IPO : ETOR Begins Trading

*UPDATE - IPO has been priced for 11.9m shares at $52.00 (above the expected 10m shares between $46.00 - $50.00). Trading to begin on Wednesday, May 14th.

In the dynamic world of fintech, few names resonate as loudly as eToro. From simplifying global investing to turning social trading into a mainstream activity, eToro has disrupted traditional brokerage models in more ways than one. Now, it’s stepping onto Wall Street’s biggest stage with its initial public offering.

On May 5, 2025, eToro Group Ltd. filed a Form F-1/A with the U.S. Securities and Exchange Commission, signaling its intention to go public on the NASDAQ Global Select Market. For both seasoned investors and newcomers, this IPO presents an exciting opportunity, but also calls for a closer look under the hood.

Let’s walk through what this IPO means for you, what risks are involved, and how it fits into the broader picture of tech-powered investing.

Quick Recap: What is eToro?

If you're not already familiar, eToro is a multi-asset investment platform headquartered in Israel, operating in over 100 countries with millions of registered users. The platform allows users to trade stocks, cryptocurrencies, ETFs, commodities, and more, all while engaging in social features like copy trading and investor feeds.

Their pitch is simple: make investing as interactive and user-friendly as social media. In a time where financial inclusion and retail investing are gaining momentum, eToro's business model hits the mark.

Breaking Down the IPO: Key Figures and Insights

Here’s the scoop straight from the filing:

• Shares Offered: 10 million Class A common shares

  • 5 million by eToro itself

  • 5 million by existing shareholders (selling shareholders)

• Expected Price Range: $46 to $50 per share

• Ticker Symbol: ETOR

• Exchange: NASDAQ Global Select Market

• Proceeds to eToro: Up to $250 million (gross), excluding deductions

• Proceeds to selling shareholders: Retained privately

This IPO isn't just about raising capital. It’s a strategic pivot for eToro to expand its reach, boost credibility, and attract long-term investors.

Dual-Class Shares: Who Really Holds the Power?

A major element in the filing is eToro's dual-class share structure, which isn’t uncommon among tech IPOs.

• Class A shares: 1 vote per share

• Class B shares: 10 votes per share and convertible into Class A shares

After the IPO, the voting power will be concentrated heavily:

• Class B shares will control approximately 89.2% of voting rights

• Executives, directors, and major shareholders will maintain over 51.6% control

This means retail investors won’t have much say in company decisions. While this setup can protect visionary leadership and long-term strategies, it can also reduce transparency and responsiveness to shareholder concerns.

Why the Dual-Class Structure Matters

A structure like this raises eyebrows for a few reasons:

1. Governance risk: Investors are betting on management without much recourse if things go wrong

2. Long-term strategy lock-in: This can be good for innovation but risky if leadership underperforms

3. M&A vulnerability: It may impact acquisition decisions or discourage activist investors

For context, other tech giants like Google and Facebook went public with similar voting imbalances. So, while this isn't a red flag on its own, it’s a key point to factor into your decision.

How Will eToro Use the Money?

According to the filing, the net proceeds from the 5 million company-issued shares will go toward:

• General corporate purposes

• Working capital

• Operational scaling

• Technology enhancements

• Potential acquisitions

It’s worth noting that eToro will not receive any of the proceeds from the shares sold by existing investors. That chunk goes straight into their pockets.

Strategic Timing: Why Now?

The timing of this IPO feels deliberate. Here's why:

• Retail investing is surging, thanks to lower barriers, social platforms, and apps like eToro, Robinhood, and Webull

• Crypto markets are rebounding, and eToro has a strong crypto trading infrastructure

• Institutional partnerships are on the rise, positioning eToro as more than just a retail brokerage

Going public in 2025 allows eToro to tap into renewed investor confidence after the 2022 downturns and present itself as a credible player ready to scale further.

A Look at the Competitive Landscape

eToro operates in a crowded but lucrative market. Key competitors include:

• Robinhood: Strong U.S. presence, limited international exposure

• Interactive Brokers: Focused on active traders and institutions

• Revolut and Freetrade: Growing in Europe with banking add-ons

• Coinbase: Dominates crypto, but lacks equity diversification

What sets eToro apart is its social trading angle. By allowing users to copy top investors and engage with financial content directly on the platform, it creates a more engaging and sticky experience, especially for Gen Z and millennial users.

The Risks: What Could Go Wrong?

Every IPO has its pitfalls, and eToro’s is no different. Here's what you should be cautious about:

• Lack of profitability: Like many fintechs, growth has taken precedence over earnings

• Regulatory risk: As a global operator, eToro must navigate multiple jurisdictions

• Crypto market volatility: With substantial exposure to digital assets, swings in crypto markets affect revenue

• Retail investor reliance: Any decline in user activity or engagement could hurt top-line growth

• Limited voting power for investors: As discussed, the dual-class share setup limits your influence

Understanding these risk factors is crucial if you plan to hold ETOR long term.

What Does This Mean for Retail Investors?

Here’s how you can view this IPO from an investment strategy lens:

• Long-term hold: If you believe in the future of fintech and eToro’s global reach, it could be a bet worth taking

• Speculative play: If you’re more risk-tolerant, early IPO pops and dips could offer short-term gains

• Passive index investors: Once eToro is added to ETFs or indexes, it could benefit from broader market exposure

Remember, IPOs can be volatile in the short term. Evaluate your risk appetite and portfolio balance before diving in.

Wrapping Up: Is This a Buy, Hold, or Pass?

eToro’s IPO is shaping up to be one of the most closely watched listings in the fintech world this year. With its strong branding, tech-forward platform, and massive retail appeal, the company has the ingredients for a successful public debut.

But no investment is without risk, especially one involving global regulation, crypto volatility, and limited shareholder influence. As always, due diligence is your best friend.

If you're excited about the future of social trading, global investing, and fintech disruption, eToro might deserve a spot on your watchlist.

FAQs About eToro’s IPO

What date will eToro go public?

There’s no specific trading date yet. The IPO will launch “as soon as practicable” after SEC effectiveness.

Can I buy eToro stock now?

Not yet. You'll have to wait until ETOR officially lists on NASDAQ.

What makes eToro unique in the IPO space?

Its social trading features, crypto accessibility, and global presence make it stand out from other online brokers.

Will eToro’s IPO include crypto offerings?

No. The IPO only covers Class A common shares, but eToro’s crypto exposure remains a major part of its business.

How do Class A shares compare to Class B shares?

Class A gives you 1 vote per share. Class B gives 10 votes and is mostly held by insiders.

Should I worry about the voting imbalance?

It's worth considering. While common in tech IPOs, it limits your ability to influence company direction.

What kind of investor is best suited for this IPO?

Those with a high-risk appetite, interest in fintech, and long-term growth outlook.

eToro's ETOR IPO

Financial Disclaimer

This article is intended for informational purposes only and does not constitute financial, investment, or legal advice. Investing in IPOs involves significant risk, including potential loss of capital. Readers should consult with a qualified financial advisor or professional before making any investment decisions. Past performance is not indicative of future results.