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.
Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.