Intriguing IPOs: eToro (ETOR)

The investing platform is entering into a crowded space, so its using windfall crypto profits to go public.

Wall Street’s Buttonwood Tree (diorama), 1945 (Museum of the City of New York)

Running an online brokerage (or investing platform, as the cool kids would say) is a pretty good business model. Even though most brokerages have gone to no commissions for buy and sell orders, there are plenty of ways to make money from degenerate traders.

We can’t call eToro (NASDAQ: ETOR) a new entrant into this market. The online investing platform has been in business since 2007. It pre-dates many of the newer offerings like Robinhood (NASDAQ: HOOD) that have become immensely popular with a particular demographic of investor.

eToro has been trying to go public for years. Its first draft statement for a public offering was in 2021. After a couple of failed attempts in 2021 and 2022, it looks like this will be the week that the company finally decides to go public.

The times for these attempted listing is important because it hints at the main driver for eToro’s profitability: Crypto trading.

eToro’s stock may not be the most intriguing issuing this year, but it does offering an interesting lesson in how companies put their vest foot forward for a public offering.

Let’s dig in.

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