Copy trading platform eToro has announced they've raised $100 million in private financing. This brings the total raised to $162 million.
eToro says it's going to use the money to expand into new markets and develop blockchain assets – possibly a decentralized digital asset exchange.
eToro saw massive growth over the last 12 months and this was mainly due to the surge in popularity in cryptocurrencies. They were one of a handful of companies leading the charge in bringing cryptocurrency to the mainstream.
With over 9 million members, eToro is currently one of the largest trading platforms in the world.
My Take on the News
This is great news for eToro. The more they expand and add new traders to the platform, the better quality traders it will attract for copy trading. I'm hoping they don't focus too much on cryptocurrency in the future. The crypto markets are still wildly volatile. And while it's definitely not going away, traditional markets aren't going anywhere anytime soon either. I'd love to see eToro invest further in their CopyPortfolios product, reducing the minimum buy in so more investors can take advantage of this product. They could also do with overhauling their spreads and fees (particularly withdrawal fees) which in my opinion aren't very competitive anymore.
Looking forward to seeing eToro grow over the next year.