eToro Pursues TradeZero Acquisition to Expand US Business; Crypto Was 11% of Q2 Trading Fees
Summary
- eToro is pursuing the acquisition of online brokerage TradeZero as it seeks to expand its US business.
- eToro said crypto accounted for 11% of its second-quarter trading fees and that it has a multi-asset business model.
- The company said the number of crypto trades on the eToro platform in July fell 73% from a year earlier, while invested amounts dropped 50%.
Forecast Trend Report by Period
Global investment platform eToro is pursuing an acquisition of online brokerage TradeZero as it looks to expand its US business.
Cointelegraph reported on August 11 that eToro is seeking to buy TradeZero to broaden its foothold in the US market. eToro's second-quarter earnings materials showed crypto accounted for 11% of fees generated by trading activity during the quarter.
TradeZero generated about $80 million in revenue over the 12 months through the end of June, with a gross margin of 81%. eToro said the deal would contribute to adjusted earnings per share in the first full year after the acquisition is completed.
Crypto made up 11% of eToro's second-quarter trading fees. The company said its multi-asset business model allows different asset classes, including stocks, commodities and crypto, to contribute to revenue depending on market conditions.
Crypto trading activity showed signs of cooling. The number of crypto trades on the eToro platform fell 73% from a year earlier to 1.4 million in July, while invested amounts dropped 50%.
EToro has recently moved to expand its multi-asset platform. In April, it announced plans to acquire self-custodial crypto wallet company Zengo.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.