eToro will become a Public Company

eToro IPOeToro has announced plans to become a public company via an SPAC.  eToro will be merging with Fintech Acquisition Corp V and is expected to have an estimated implied equity value of $10.4 billion.

I’ve been an eToro customer for the past few years and have used the platform to invest in US shares and trade via copy trading.  I’m excited to see this next chapter for eToro.

What is an SPAC

An SPAC stands for Special Purpose Acquisitions Company.   An SPAC is setup as a shell company with the intention of raising money via an IPO and then making an acquisition using that money of an existing company.  SPACs have been super popular recently and many companies are choosing this route to go public over a traditional IPO.

In this case Fintech Acquisition Corp V will merge with eToro.  They are contributing $250 million and a further $650 million will be contributed by Softbank, Third Point and Fidelity at $10 a share.    All of this is subject to approval but you can expect eToro to be listed as eToro Group on the Nasdaq in the third quarter of 2021.

eToro’s Growth

eToro has had an impressive couple of years.  They have recently hit 20 million registered users, with 5 million of those being added in 2020.   They have benefited from a massive growth in retail investors which I call the Robinhood effect.  They’ve also seen massive interest in their crypto trading product as cryptocurrency becomes a more mainstream investment.

eToro’s unique selling point is their social trading network.  It’s 20 million users are able to follow and copy the trades made by more experienced investors.    In my opinion eToro dominates this space and it’s an extremely valuable feature for the company.

How to Buy eToro Stock

Right now you can invest in Fintech V (Nasdaq FTVC) but for most people it will be best to wait until the merger is complete.  The deal could still potentially fall apart and that could be a major risk.

When eToro stock is listed I’m assuming you will be able to trade it via eToro.  You can invest in U.S shares with no commissions on eToro.  You can also invest via Stake – which also offers commission free trading on US shares.

Am I investing in eToro stock

I’ve been a long time user of eToro.  They have simplified the process of investing in Shares, Crypto and Forex.  In general I like to invest in companies and products that I use.  So I plan to add eToro shares to my portfolio when they are listed on the Nasdaq.  I will most likely be buying them through eToro!

Remember this isn’t investment advice.  Always do your own research.

You can view the full press release here.

You can find out more about investing on eToro here

This post is for educational purposes and should not be considered as investment advice. This post is based on individual experience and journalistic research.

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