Social trading platform eToro (ETOR) saw its shares rise 7% on Monday. This momentum followed its strong third-quarter results. The firm reported impressive asset growth at eToro, reaching $20.8 billion. Co-founder and CEO Yoni Assia also announced a $150 million share repurchase plan.
eToro’s Q3 financial numbers surpassed expectations. The company posted a 76% year-over-year increase in assets under administration, totaling $20.8 billion. Furthermore, net contribution grew 28%, reaching $215 million. GAAP net income also showed strength. This metric rose 48% year-over-year to $57 million. The number of funded accounts expanded 16% to 3.73 million. This latter figure was supported by the integration of the Australian app Spaceship, acquired in 2024.
Likewise, eToro’s rebound is not limited to traditional finance. The platform is showing a renewed and vigorous focus on the crypto sector. In October, eToro users executed 5 million cryptocurrencies trades. This represents a notable 84% increase from the previous year. The average invested amount per trade grew 52%, settling at $320. Interest-earning assets on the platform also rose 55% year-over-year. They reached $8.7 billion, signaling greater investor confidence.
Is eToro leading the merger between traditional finance and digital assets?
This asset growth at eToro coincides with a significant strategic pivot. The company appears to be regaining ground in the US market. In September 2024, eToro suspended most of its US crypto operations. This occurred after a $1.5 million settlement with the SEC for operating as an unregistered broker. However, the regulatory climate seems to be changing. Recent statements from the SEC Chair, Paul Atkins, suggest that “most crypto tokens are not securities.” This new context, along with the Trump administration’s pro-crypto push, benefits eToro.
Looking ahead, eToro plans to deepen its technological integration. The company confirmed the upcoming launch of its new crypto wallet. This wallet will give users access to prediction markets, lending products, and tokenization. In fact, eToro already revealed plans in July. They seek to tokenize 100 of the most popular US stocks and ETFs as ERC-20 tokens on Ethereum. This move follows an industry trend, where its competitor Robinhood also announced a similar solution on Arbitrum.
