The exchange platform’s foray into cryptocurrency has been highly lucrative thus far.
Exchange platform eToro is coming off a stellar year of growth, as novice traders seek new pathways into the financial markets, including cryptocurrency.
The online brokerage firm ended 2020 with gross revenue of $600 million, with total trading volume surging 40% to $1.5 trillion.
Describing his firm as a technology company and multi-regulated broker, CEO Yoni Assia said:
“The last few years have seen a rapid growth in eToro’s headcount reflecting both our global expansion and the growth of our product offering and client base.”
eToro has operated a successful social trading platform for a number of years, allowing novice traders to access forex, commodity and equity markets. In 2019, the platform expanded into digital assets by launching a crypto exchange and eight branded stablecoins.
The introduction of digital asset services is partly responsible for eToro’s rapid growth over the past year. Earlier this month, the exchange warned users that crypto trading may become limited because of “unprecedented demand.”
The warning came on the heels of Bitcoin (BTC) smashing new all-time highs near $42,000 and the broader cryptocurrency market hitting a $1 trillion valuation for the first time.
Assia said 2020 was a “big year for stocks,” but that 2021 has so far been “dominated by crypto headlines.” He claims crypto trading volumes at his firm are up more than 25 times compared with the same period last year.
eToroX, the company’s digital asset platform, reportedly generated $670 million in volume on Tuesday, according to CoinMarketCap. That puts it in the top 20 largest exchanges by volume.
According to Finance Magnates, eToro’s secondary market valuation has surged to over $2.5 billion, having more than tripled since 2018.