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eToro Moves On Past its Failed SPAC Merger Deal

Ryazan, Russia - September 09, 2018: Homepage of Etoro website on the display of PC, url - Etoro.com.

eToro, the well-known trading company, is pushing ahead, months after it abandoned its plan to go public in New York. The firm has pushed ahead with its marketing plan and even made a rare acquisition to boost its offerings.

When will eToro go public?

eToro is one of the best-known online brokers in the world. The firm, which is a pioneer in social trading, has grown to accumulate over 30 million customers from around the world. Over the years, the company expanded its offerings to include products like cryptocurrencies, stocks, and indices.

2021 was a great year for eToro as more people from around the world started their trading careers. As a result, the company made an agreement to go public by merging with a SPAC founded by Betsy Cohen, the founder of The Bancorp. At the time, the deal valued eToro at over $10 billion, making it one of the biggest firms in the world.

2022 has been a difficult year for eToro and other competitors like Robinhood and WeBull as global stocks and cryptocurrencies tanked. As a result, shares of firms like Robinhood and Coinbase collapsed. 

In July, the valuation of the deal was slashed by almost half to about $8 billion. In response, the two companies decided to terminate the agreement. This situation also happened since many SPAC mergers that happened in 2022 have disappointed. 

eToro moves on

Analysts believe that eToro will consider going public again in the coming months if the financial market stabilizes. In the mean time, the company has continued boosting its services. This month, he company announced that it will move to the options market by acquiring Gatsby. 

Gatbsy is a company that competes with IG Group’s TastyTrade. It provides commission-free options and stocks trading app that targets young people. Talking about the deal, Yoni Assia, eToro’s CEO said:

“The internet has democratized financial information and a sea change has taken place, empowering more everyday investors to trade and invest. These retail investors are looking for opportunities to generate returns in today’s bear market.”