TLDR:
- Cathie Wood’s ARK purchased 140,000 shares of eToro worth $9.38 million
- eToro’s IPO priced at $52 per share, above the expected $46-$50 range
- Shares opened at $69.69 and closed at $67 on debut day, up 29%
- eToro’s market cap reached $5.5 billion based on closing price
- Company reported 3.5 million funded accounts and 1,161% surge in net income to $192 million in 2024
eToro Group Ltd (ETOR) made a splashy entrance into public markets on Wednesday, catching the eye of star investor Cathie Wood. Her investment firm ARK scooped up 140,000 shares of the trading platform on its first day of trading.
The purchase was made through ARK’s Fintech ETF. The investment is valued at $9.38 million based on Wednesday’s closing price.
eToro priced its initial public offering at $52 per share. This was above the expected range of $46 to $50 that the company had set earlier.
Cathie Wood's ARK Invest snapped up $9.4M worth of eToro $ETOR shares yesterday
After hitting a high of $74 on it's Nasdaq debut, the stock is currently trading at $64 📉 pic.twitter.com/cggeGPmPWw
— Trader Edge (@Pro_Trader_Edge) May 15, 2025
When trading began, investor enthusiasm pushed the opening price to $69.69. By the end of the day, shares settled at $67, marking a 29% gain from the IPO price.
The company also increased the size of its offering. eToro upsized from the originally planned 10 million shares to 11.9 million shares.
Market Response and Valuation
The strong first-day performance gave eToro a market capitalization of $5.5 billion. This valuation reflects investor confidence in the company’s growth potential.
For Wood’s ARK Invest, this move fits with its existing portfolio strategy. ARK already holds positions in eToro’s main competitors.
Both Robinhood Markets Inc (NASDAQ:HOOD) and Coinbase Global Inc (NASDAQ:COIN) are major holdings in ARK’s Fintech ETF. They currently rank as the second and third largest positions in the fund.
This latest purchase shows Wood’s continued interest in trading platforms and cryptocurrency-related businesses.
Company Performance
eToro has shown impressive growth in recent periods. The company ended 2024 with 3.5 million funded accounts across 75 countries.
Its financial results have been eye-catching. Net income jumped by 1,161% last year, reaching $192 million.
The platform offers a range of investment options. Users can trade stocks and options through the service.
eToro was also an early entrant in cryptocurrency trading. This position has helped it capture market share as digital assets gained mainstream attention.
The successful IPO comes during a period of renewed interest in trading platforms. Retail investor participation has remained strong following the surge that began during the pandemic.
eToro’s public debut follows years of private growth. The company has built its brand around social trading features that let users follow and copy other investors’ strategies.
The increased offering size suggests strong demand from institutional investors during the IPO process. Underwriters saw enough interest to expand the number of shares available.
ARK’s quick move to acquire shares indicates Wood’s team had been watching eToro closely. The purchase was executed on the very first day of public trading.
The stock closed slightly lower on Thursday at $66.85, representing a minor decrease of 0.22% from its first-day closing price.
