Blab Crypto
eToros $231 Million TradeZero Deal Signals Shift From Crypto Trading to US Brokerage Expansion
On August 11, 2026, eToro Group Ltd. made headlines by announcing its intent to acquire U.S. online brokerage TradeZero for up to $231 million in cash and stock. The deal, which would include up to 2.5 million newly issued eToro Class A common shares, is expected to close in the first half of 2027 once regulatory approval is obtained.
The announcement arrived on the same day eToro revealed a steep drop in its crypto‑trading activity: July’s volume fell 73 % year‑over‑year to 1.4 million trades, and the average investment per crypto trade dropped 50 % to $182. As of June 30, 2026, the company’s crypto‑asset holdings stood at roughly $50 million, down from $62.6 million at the end of 2025. In the second quarter, eToro reported crypto revenue of $1.35 billion, a decline from $1.91 billion a year earlier.
TradeZero, founded in 2015, generated about $80 million in revenue for the twelve months ended June 30, 2026, with an 81 % gross margin. The platform is best known for commission‑free stock trading and a proprietary short‑locator tool that delivers real‑time hard‑to‑borrow data for short‑selling. Daniel Pipitone, TradeZero’s co‑founder and CEO, said on the announcement date that the firm was “built by active traders, for active traders.”
eToro’s pivot toward the U.S. brokerage market echoes a broader trend of retail‑brokerage consolidation. Earlier in 2026, Kraken’s parent company Payward paid up to $550 million for derivatives platform Bitnomial to secure federal clearing and brokerage licenses—a strategy that mirrors eToro’s move to acquire regulated brokerage infrastructure instead of building it from scratch.
The deal is described by eToro as financially accretive. CFO Meron Shani said the acquisition would add to adjusted earnings per share in the first year after closing. CEO Yoni Assia highlighted the importance of “AI and on‑chain finance” as the next chapter for eToro, noting that the firm has invested in on‑chain perpetual futures platform Extended and partnered with the Open USD stablecoin project.
In addition to TradeZero, eToro has closed acquisitions of self‑custody firms Zengo and Bit2C, and it has built crypto infrastructure such as a self‑custody wallet and on‑chain services. These moves indicate a pivot away from relying on trading volume for growth and toward building a broader financial services platform.
For users trading crypto on eToro, the acquisition does not change account terms or fees. The TradeZero platform handles U.S. stocks and options, not digital assets, so crypto‑related services remain unchanged.
Regulatory approval remains the key hurdle. The U.S. Securities and Exchange Commission and other authorities must clear the merger before the two firms can operate as a single entity. Once approved, eToro will be able to offer a more comprehensive suite of U.S. brokerage services, including options and potentially futures, to its global customer base.
The transaction reflects a broader industry pattern in which firms are investing heavily in regulated brokerage infrastructure to meet U.S. market requirements. While eToro’s crypto trading volume continues to decline, the company’s overall strategy appears to be focused on expanding its presence in the U.S. equities market and leveraging its existing technology to support on‑chain finance.
In summary, eToro’s acquisition of TradeZero for up to $231 million signals a strategic shift from a crypto‑volume‑driven model to a diversified brokerage platform. The deal is pending regulatory approval and is expected to close in early 2027. Meanwhile, eToro’s crypto revenue remains lower than the previous year, and the company is redirecting resources toward self‑custody, on‑chain infrastructure, and AI‑driven financial services.
The announcement arrived on the same day eToro revealed a steep drop in its crypto‑trading activity: July’s volume fell 73 % year‑over‑year to 1.4 million trades, and the average investment per crypto trade dropped 50 % to $182. As of June 30, 2026, the company’s crypto‑asset holdings stood at roughly $50 million, down from $62.6 million at the end of 2025. In the second quarter, eToro reported crypto revenue of $1.35 billion, a decline from $1.91 billion a year earlier.
TradeZero, founded in 2015, generated about $80 million in revenue for the twelve months ended June 30, 2026, with an 81 % gross margin. The platform is best known for commission‑free stock trading and a proprietary short‑locator tool that delivers real‑time hard‑to‑borrow data for short‑selling. Daniel Pipitone, TradeZero’s co‑founder and CEO, said on the announcement date that the firm was “built by active traders, for active traders.”
eToro’s pivot toward the U.S. brokerage market echoes a broader trend of retail‑brokerage consolidation. Earlier in 2026, Kraken’s parent company Payward paid up to $550 million for derivatives platform Bitnomial to secure federal clearing and brokerage licenses—a strategy that mirrors eToro’s move to acquire regulated brokerage infrastructure instead of building it from scratch.
The deal is described by eToro as financially accretive. CFO Meron Shani said the acquisition would add to adjusted earnings per share in the first year after closing. CEO Yoni Assia highlighted the importance of “AI and on‑chain finance” as the next chapter for eToro, noting that the firm has invested in on‑chain perpetual futures platform Extended and partnered with the Open USD stablecoin project.
In addition to TradeZero, eToro has closed acquisitions of self‑custody firms Zengo and Bit2C, and it has built crypto infrastructure such as a self‑custody wallet and on‑chain services. These moves indicate a pivot away from relying on trading volume for growth and toward building a broader financial services platform.
For users trading crypto on eToro, the acquisition does not change account terms or fees. The TradeZero platform handles U.S. stocks and options, not digital assets, so crypto‑related services remain unchanged.
Regulatory approval remains the key hurdle. The U.S. Securities and Exchange Commission and other authorities must clear the merger before the two firms can operate as a single entity. Once approved, eToro will be able to offer a more comprehensive suite of U.S. brokerage services, including options and potentially futures, to its global customer base.
The transaction reflects a broader industry pattern in which firms are investing heavily in regulated brokerage infrastructure to meet U.S. market requirements. While eToro’s crypto trading volume continues to decline, the company’s overall strategy appears to be focused on expanding its presence in the U.S. equities market and leveraging its existing technology to support on‑chain finance.
In summary, eToro’s acquisition of TradeZero for up to $231 million signals a strategic shift from a crypto‑volume‑driven model to a diversified brokerage platform. The deal is pending regulatory approval and is expected to close in early 2027. Meanwhile, eToro’s crypto revenue remains lower than the previous year, and the company is redirecting resources toward self‑custody, on‑chain infrastructure, and AI‑driven financial services.
