Shares of social trading and investing platform eToro (Nasdaq: ETOR) experienced a significant climb on Monday following the release of impressive third-quarter results. The company reported a robust 76% year-over-year increase in assets under administration, reaching an impressive $20.8 billion.
eToro also showcased a healthy 28% rise in net contribution, hitting $215 million, up from $167 million in the same period last year. Adding to the positive sentiment, the company announced a $150 million share repurchase program. Net income under Generally Accepted Accounting Principles (GAAP) saw a substantial 48% increase to $57 million, compared to $39 million in the previous year’s third quarter. The platform also expanded its funded accounts by 16%, reaching 3.73 million, a growth partly attributed to the successful integration of Australia’s Spaceship app, acquired earlier in 2024. These strong financials propelled eToro’s shares up by approximately 7% during Monday’s intraday session on the Nasdaq.
A Return to Crypto and Future Innovations
eToro’s commitment to the cryptocurrency market is evident in its recent activity. In October, eToro users executed 5 million cryptocurrency trades, an 84% surge from the previous year. The average invested amount per trade also rose significantly by 52% to $320, while interest-earning assets climbed 55% year-over-year to $8.7 billion. Looking ahead, the company plans to launch a dedicated crypto wallet within the next few quarters, offering users access to prediction markets, tokenization, and lending products.
Co-founder and CEO Yoni Assia emphasized eToro’s focus on product development and innovation, particularly highlighting initiatives related to AI and copy trading. The past quarter saw the launch of “Tori,” an AI-powered analyst designed to deliver personalized investment insights to users.
This renewed push into crypto comes after eToro suspended trading for most cryptocurrencies in the US in September 2024, following a $1.5 million settlement with the Securities and Exchange Commission over allegations of operating an unregistered brokerage. However, the regulatory landscape for digital assets in the US has shifted, with President Donald Trump expressing a desire to make the country a global hub for crypto and AI innovation, and SEC Chair Paul Atkins stating that “most crypto tokens are not securities.”
Furthermore, eToro is actively exploring Real World Asset (RWA) tokenization. In July, the company revealed plans to tokenize 100 of the most popular US-listed stocks and exchange-traded funds (ETFs) as ERC-20 tokens on Ethereum, facilitating 24/5 on-chain trading. This move mirrors similar initiatives from competitors like Robinhood, which recently announced a layer-2 network on Arbitrum to tokenize US stocks, providing European investors with 24/5 access to over 200 tokenized equities and ETFs.
