Israel's eToro valued at $5.6 billion in bumper Nasdaq debut after tariff-driven delays

By Ateev Bhandari

May 14 (Reuters) - Robinhood-rival eToro ETOR.O secured a valuation of $5.64 billion after its shares surged 34% in their Nasdaq debut on Wednesday, becoming the first U.S. IPO to make it to market after tariff uncertainty delayed several planned launches.

The company's stock opened at $69.69 apiece, above the $52 offer price - the biggest Israeli fintech offering on a U.S. exchange since the 2021 IPO of Riskified RSKD.N, according to Dealogic data.

The solid first-day reaction could reignite listing plans of companies such as Klarna that had put off their roadshows after U.S. President Donald Trump's flip-flop on tariffs scuttled markets.

Digital banking fintech Chime filed for a Nasdaq listing on Tuesday in another closely watched event for signs of a recovery in IPO markets.

eToro's launch marks a 61% appreciation from the $3.5 billion valuation secured in its 2023 funding round, underscoring strong market interest for platforms enabling speculation and trading by retail investors.

Revenue from facilitating of crypto assets trades almost quadrupled to $12.15 billion in 2024 from the previous year.

CRYPTO PRESIDENT

eToro arrives on the Nasdaq days after Coinbase Global COIN.O became the first digital asset player to be included in the benchmark S&P 500 index .SPX - a landmark moment of legitimacy for the crypto sector that is expected to benefit from lighter regulations under President Trump.

Under the leadership of crypto proponent Paul Atkins, the Securities and Exchange Commission has retreated on oversight of the sector, withdrawing or pausing cases against Robinhood HOOD.O and exchanges Coinbase COIN.O and Kraken.

Trump's crypto ventures, including the $TRUMP memecoin, have drawn mixed reactions.

While ethics experts have questioned whether it's possible to separate personal holdings from public policy, others — such as eToro CEO Yoni Assia — believe that speculation on memecoins generally brings more people into the market.

"We have learnt when people get more educated about the crypto markets, they generally get more educated about the stock and capital markets," Assia told Reuters in an interview.

eToro's U.S. crypto offerings, however, are limited to bitcoin, bitcoin cash, and ether as part of a September settlement with the SEC.

"The failure of the GENIUS Act shows how tough it is to get crypto legislation through Congress, and questions around politically connected tokens are adding another layer of scrutiny," said Georgiades.

Although possible, reprieve might not come easy for eToro, according to Anthony Georgiades, general partner at Innovating Capital.