EToros Q2 crypto revenue increased 23x from last year

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eToro, the investment platform slated to go public with a valuation of $ 10.4 billion, saw its revenue from billing commissions on crypto transactions surge in the second quarter.

EToros’ latest quarterly results for the second quarter of 2021, announced on August 25, show that crypto transactions were responsible for 73% of the commissions charged by the platform during the period. Crypto only accounted for 7% of commissions in the second quarter of the previous year.

A total of about $ 362 million in commissions was billed in the second quarter, compared to about $ 161 million in total in the same period last year. This equates to $ 264 million in crypto commissions, which is 23 times more than the $ 11.27 million in crypto-related fees in Q2 2020.

A breakdown of the major cryptocurrencies traded through eToro shows that a wide array of tokens have contributed to the frenzy. BTC, for example, accounted for only 7% of total crypto commissions, less than half of contributions from ETH, ADA, and XRP, and even less than DOGE, the meme currency, which was added to the platform only in May.

The increase in self-directed investing and the growth of eToros is underpinned by long-term secular trends in investor behavior, Yoni Assia, CEO and co-founder of eToro, said in a statement. He added that he believes investors want three things from a platform: easy access to investments that include crypto, good user experience, and financial education tools.

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eToro also saw its volumes increase in other areas in the second quarter. Notably, the platform processed 127 million transactions in the second quarter of this year, compared to 74 million in the second quarter of 2020.

But despite the large increase in trading on eToro in cryptos and other asset classes, the company posted negative net income of $ 89 million in the second quarter. He attributes the loss to a non-cash charge of $ 71 million in stock-based employee compensation and $ 36 million in transaction costs related to its upcoming merger with a special-purpose acquisition company (SPAC ).

The company announced in March its merger with FinTech Acquisition Corp. V, the blank check company run by Betsy Z. Cohen, founder of The Bancorp.

The SPAC listing gave eToro a valuation of around $ 10.4 billion and included commitments for a private placement of $ 650 million from investors such as SoftBank Vision Fund 2, ION Investment Group, Third Point LLC, Fidelity Management & Research Company LLC and Wellington Management.

2021 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.

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