Crypto-friendly trading platform eToro is set to go public through a merger with a SPAC. The merger, backed by SoftBank and banking entrepreneur Betsy Cohen, will value eToro at $10 billion.
The deal with the special purpose acquisition company, will include a $650 investment from investors including SoftBank Vision Fund, ION Investment Group, Third Point, and Fidelity Management & Research.
Founded in 2007, eToro has 20 million registered users who can manually invest in cryptocurrencies, stocks, commodities and more. Branding itself as a “social trading” network, eToro enables users to automatically copy the trades of others on the platform.
The app’s primary competitor is Robinhood, which has become hugely popular with young investors for its easy-to-use interface.
EToro branched out into crypto trading via CFDs in 2013, but later phased out that structure in favour of offering direct crypto exposure to clients.
Interest in Bitcoin Trading Booms
In 2020, eToro added over 5 million new registered users and generated gross revenue of $605 million, a 147% jump from a year earlier.
Bitcoin accounts for one of every 25 positions opened on eToro, while the most popular stocks are Tesla, Microsoft and Apple.
Multiple crypto-related companies and startups are going public in the US to take advantage of the capital market boom. Cryptocurrency exchange giant Coinbase has opted for a direct listing on Nasdaq.
Additionally, Kraken, another major crypto exchange, is considering a stock market debut in 2022.