Trading platform eToro plans to acquire US online brokerage TradeZero as part of its expansion, while reporting a 30% decline in Q2 crypto revenue. This move is seen as an effort to diversify and main
eToro, a prominent trading platform, has announced plans to acquire US-based online brokerage TradeZero as part of its strategic expansion into the United States market. The acquisition comes amidst declining crypto revenues for eToro, which reported a 30% drop in Q2 cryptocurrency-related revenue compared to the same period last year.
In its second-quarter report, eToro disclosed total revenue of $1.59 billion, down from $2 billion recorded in the previous quarter. Crypto-related income accounted for approximately $1.34 billion, a significant reduction from the $1.9 billion seen during Q2 2025. However, despite this decline, the platform managed to report net income of $19.7 million from crypto assets and overall earnings of $53.4 million.
The acquisition of TradeZero is part of eToro’s broader strategy to expand its offerings beyond cryptocurrencies into equities and commodities trading. Earlier in April, it announced plans to acquire Zengo, a self-custodial wallet provider, further emphasizing its commitment to diversification. The CFO, Meron Shani, highlighted that users who traded commodities during the Q4 2025 to Q1 2026 period were more likely to trade equities in subsequent quarters and many of these users also engaged with crypto trading on eToro.
TradeZero generated about $80 million in revenue over the last year, maintaining gross margins around 81%. EToro anticipates that this deal will be accretive to adjusted earnings per share within its first fiscal year. The acquisition is expected to close by the first half of 2026 and has already caused a decline in eToro’s stock price with shares dropping over 5% pre-market on Tuesday.
This development highlights the challenges faced by crypto-focused platforms as market conditions evolve, but also underscores their efforts to adapt through diversification. The acquisition is likely to impact not only eToro's trading volume and user base but could also set a precedent for other firms looking to expand into multi-asset trading environments.
Traders should monitor the integration process between TradeZero and eToro’s existing platform, as well as any potential changes in product offerings or fee structures. Additionally, investors may want to keep an eye on how this acquisition affects overall crypto market trends and whether it influences broader industry consolidation efforts.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.