Crypto trading nets eToro more than 70% of commission income in Q2

Based on the results for the second quarter of 2021, the eToro investment platform earned more than $264 million in commissions from cryptocurrency trading, according to data published in the investor report on August 25, 2021.

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We continue to see strong positive momentum and our Q2 numbers demonstrate ongoing growth in new registered users and total commissions.
▶️Press release at: https://t.co/A9ieL47lPg

Subject to disclaimers at: https://t.co/BIQ4EsQwgy

— eToro (@eToro) August 25, 2021

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For the three months ended June 30, the platform earned $362 million in commission revenue, up 121% from the same period in 2020. Seventy-three percent of that amount came from fees on trading digital assets. For comparison: in the second quarter of 2020, the figure did not exceed 7%.

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Statistics on the main digital assets traded on eToro show that the rapid income growth was driven by the popularity of altcoins. In the quarter, Bitcoin accounted for only 20% of trading volume and 7% of commissions.

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For comparison: Cardano (ADA) accounted for 15%, Ethereum — 14%, Dogecoin (DOGE) — 11%. The assets that eToro labelled as \”other\” accounted for 37% of cryptocurrency trading fees.

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As of June 30, 2021, assets under management, including digital assets, were valued at $9.4 billion. The lion’s share of cryptocurrencies on user accounts on the platform was Cardano (23%) and Bitcoin (22%).

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The number of trades on the platform rose to 127 million, and the number of registered users reached 23.2 million — of which 2.6 million joined the platform from April to June. At the same time, balances on 2 million accounts were positive.

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Despite the growth in metrics, eToro posted a negative net income of $89 million. The company attributed this result to stock-based compensation of $71 million and transaction costs related to the forthcoming merger with SPAC, which amounted to $36 million.

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eToro will go public through a reverse merger with FinTech Acquisition Corp. V. The preliminary valuation of the combined entity was $10.4 billion.

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