Trading platform eToro is expanding into the US by acquiring online brokerage TradeZero, as it reports a significant drop in Q2 crypto-related revenue. This move aims to bolster its multi-asset tradin
eToro, a leading global trading platform, has announced plans to acquire US-based online brokerage TradeZero, signaling an expansion strategy into the North American market. The acquisition is part of eToro's broader initiative to diversify its offerings beyond cryptocurrencies, aiming for a multi-asset trading platform.
In its second quarter report, eToro disclosed a 30% decline in crypto-related revenue compared to Q2 2025. Despite this downturn, the company reported $1.34 billion from crypto assets out of total revenues of $1.59 billion. The net income from these crypto transactions stood at $19.7 million, while overall net income was lower at $53.4 million.
This decline in revenue is attributed to a 73% year-on-year drop in cryptocurrency trades and a halved invested amount on the platform. However, eToro's focus remains on diversification; equities and commodities-related trading generated $141 million in net income during this period. The company has also been actively expanding into digital assets, recently announcing plans to acquire self-custodial wallet provider Zengo.
TradeZero is expected to contribute significantly due to its strong financials—generating about $80 million of revenue with gross margins at 81% over the last year. eToro anticipates this deal will be accretive to adjusted earnings per share in the first year, setting a positive outlook for post-acquisition performance.
The acquisition is seen as strategic by industry analysts who note that it could enhance eToro's market presence and user base. However, with crypto markets still volatile, investors remain cautious about potential risks associated with such acquisitions during downturns.
Following the announcement, eToro’s shares traded down more than 5% in pre-market activity on Tuesday, indicating some investor skepticism over this move amid current market conditions.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.