eToro pivots to U.S. brokerage market as crypto trading volumes slide

The deal, expected to close in the first half of 2027, involves a mix of cash and 2.5 million new Class A shares. By integrating TradeZero’s infrastructure and active-trader customer base, eToro CEO Yoni Assia intends to accelerate product launches for U.S. clients. TradeZero, which generated $80 million in revenue with an 81% gross margin for the year ending June 30, 2026, provides specialized tools for frequent traders, including short-selling capabilities and extended-hours access.

This expansion arrives as eToro’s core crypto business faces significant headwinds. July data shows a 73% drop in crypto trades compared to the previous year, with total invested amounts falling by half. While eToro continues to invest in digital assets—including the recent acquisition of wallet provider Zengo and a $12.5 million investment in decentralized exchange Extended—the company is increasingly diversifying. During the second quarter, net trading income from equities, commodities, and currencies climbed 24% to $141.6 million, helping the firm beat analyst earnings expectations with $0.68 per share.