EToro, a broker with over 20 million users, announced its plans to go public a few days ago, following Coinbase. By listing its activities on the Nasdaq exchange through a Special purpose acquisition company (SPAC). They said they are merging with FinTech Acquisition Corp. V, a publicly traded special purpose acquisition company, in a $ 10.4 billion deal. Shares of FinTech Acquisition Corp. V are up 45% on this news.
EToro will merge with this company by actually buying this company and hence becoming listed on the exchange. Although the company hasn’t yet finalized the name of the new ticker.
Essentially, this listing route gives interested parties the opportunity to indirectly invest in a private company as soon as it announces its intention to go public.
For eToro, which was founded in 2007 in Israel and has offices in Cyprus, the United Kingdom, Australia and the United States, the merger with FinTech Acquisition Corp. is a way to grow the business and increase brand awareness, especially as competitor Robinhood continues to face negative press reviews about the temporary ban on GameStop trading on the platform.
EToro CEO Yoni Assia considers the current moment to be the most appropriate – the growth of the cryptocurrency market is combined with an interest in social trading and the company’s own success.
Yoni Assia about his company
Yoni Assia, said eToro was founded with the goal of opening up the global marketplace to trade and invest in a simple and transparent way. He also noted that users come to eToro to invest, but also communicate with each other; see, follow and automatically copy successful investors from all over the world.
The company positions itself as a social trading platform – and it’s growing rapidly.
EToro’s growth in 2020 amounted to 147 %
In 2020, revenue more than doubled to $ 605 million. And last year the company said it added over 5 million new registered users. Also, monthly registrations on its platform rose to 1.2 million in January, compared with an average of 440,000 last year.
The company also reported that eToro completed over 75 million trades in 2020, nearly triple the monthly average of 27 million. And they make big bets on trading bitcoin and other cryptocurrencies, as well as stocks.
The head of the company believes that going public will allow eToro to grow even faster.
It is expected that in 2021 the company will start providing stock trading services in the United States.
The Chairman of FinTech Acquisition V in his speech, noted that eToro has exceptional opportunities and great prospects.
In recent months, talk of crypto companies going public started to appear in the headlines of a variety of newspapers. EToro, a platform for buying and selling cryptocurrencies and monetary assets, is one of the newest cryptocurrency corporations trying to go public.