“Time will tell how this SPAC enthusiasm plays out, but as always, Wall Street milks every cow until it’s dry and then determines how to take advantage of the carcass,” said James Gowen, chief investment officer at small-cap stocks at Spouting Rock. said. Asset Management, by email at CNN Business.
Banking on the boom in social trading for stocks and bitcoin
Once a SPAC is public, it usually takes 18 to 24 months for a business to merge to become public. If the SPAC is unable to do so, it must dissolve and return the proceeds of its own IPO to investors.
Founded in Israel in 2007 and having offices in Cyprus, the United Kingdom, Australia and the United States, the merger with FinTech Acquisition Corp is a way to grow its business and create more brand recognition – especially as Robinhood still has to deal with the bad press he received because he had to temporarily ban trading in GameStop on the platform.
“We founded eToro with the vision of opening up and trading and investing the global market to everyone in a simple and transparent way,” said Yoni Assia, CEO of eToro, in a statement. “Our users come to eToro to invest, but also to communicate with each other; to see, track and automatically copy successful investors from around the world.”
The company describes itself as a social trading platform – and it is growing rapidly.
Revenue more than doubled to $ 605 million in 2020, and the company added more than 5 million new registered users last year. eToro also said that monthly registrations for its platform grew to 1.2 million in January, up from an average of 440,000 last year.
Robinhood IPO still at hand?
The company also said that by 2020, eToro had executed more than 75 million transactions, nearly tripling its monthly average of 27 million. And it bets a lot on bitcoin and other cryptocurrencies, as well as stocks.
“In the last few years, eToro has strengthened its position as the leading online social trading platform outside the US, outlined its plans for the US market and diversified its revenue streams,” Betsy Cohen, chair of FinTech Acquisition V, said in a statement. “It is now at a turning point of growth, and we believe eToro is exceptionally positioned to seize this opportunity.”
Making eToro public now is interesting timing, as its competitor, Robinhood, is still up and running for its own exchange later this year.