eToro describes itself as a company that allows individuals to access their trading platform and multi-asset brokerage service. The company provides individuals with financial, bitcoin exchange as well as copy trading services. eToro is an Israeli company and is a key player in the investment management business nowadays. The company was founded by CEO Yoni Assia and had a worth of over $800 million.
Yoni Assia, the company’s CEO, stated that this present time is the best time to go public for eToro, and several factors support this action the company took. Yoni Assia explained that, especially in 2020, eToro grew very significantly, even more so than all the other years by more than 147%. And he mentioned that the year 2021 has also set a pace of crypto bull markets and mainstream in full swing. The year 2021 also brought about an almost global discussion about the fusion of social media platforms with investment platforms. So, all these events that have begun in 2021 have been what Assia called a “perfect storm” for eToro.
The cryptocurrency market has been flourishing recently
Yoni mentioned that a lot of people have been expressing interest from almost every corner of the world now in the global market business. Yoni said that the global market was their original intention in 2017 when eToro first started. At the time, eToro had already opened the global markets to participate in trading and invest in a very efficient and simplified way. 2021 has shown a huge interest in the global markets so far.
BTC and the whole of the cryptocurrency market in March 2020 during the outbreak of the COVID-19 pandemic crashed hard at the time, which caused a really big fall in the prices. But despite that March price crash, BTC and the whole cryptocurrency market stood out and performed exceptionally well in 2020 alone. Many mainstream markets also faired very well in 2020, while Bitcoin gained most of its momentum later in the year. BTC even broke the 2017 record it had way back, in December 2020, as the record highest so far. 2021 has not been any different with these record-breaking achievements and hallmarks in the cryptocurrency market.
Date and process of going public
On the 16th day of March in 2021, eToro announced that they had plans to take their operation public on the Nasdaq through the aid of a SPAC, also called Special Purpose Acquisition Company. The process involves a merging between a private company (which is eToro) with a public company called a SPAC company.
Yoni Assia explained that this was the right step to take for eToro because when a company grows even larger than initial expectations, it is essential to merge with a SPAC company and become a public markets company. This ensures that the fast-growing company is ready for the next surge of growth, and this time, as a larger and a public markets company. Assia also disclosed that they are very excited about this new phase of growth for eToro.
Several other crypto companies also plan on going public soon. For example, Coinbase, a crypto exchange company, plans on taking its business public in April 2021 through a direct listing on the Nasdaq stock exchange. Similarly, Diginex, a digital asset company, went public on Nasdaq in October 2020.
eToro plans on buying and merging with a SPAC called Fintech V, Yoni Assia said. So, they will be merging and buying the company and will be listed as eToro. The SPAC is officially known as Fintech Acquisition Corp V, and it trades on the Nasdaq under the ticker identity of FTCV.
Yoni Assia explained all these factors in an interview with cointelegraph.com, and it has been a sort of trend in the crypto sphere recently as many crypto companies are going public.