eToro Crypto Business Posts $7.2M Loss as Revenue Falls

• eToro’s crypto business lost $7.2M as weaker trading activity hit Q2 results.
• Crypto trading cooled sharply, with July trades down 73% year over year.
• eToro keeps expanding with new crypto products and a bigger U.S. brokerage push.

eToro’s crypto business posted a $7.2 million loss in the second quarter, even as the trading platform reported stronger earnings overall.

The company generated $1.35 billion from cryptoassets during the quarter, down from $1.91 billion a year earlier. The decline came as crypto trading activity weakened from a year ago.

Crypto Activity Slows

eToro recorded 1.4 million crypto trades in July, down 73% from a year earlier. The average crypto trade also fell 50% to $182.

The broader business performed better. Total net contribution rose 9% to $229 million, while funded accounts increased 18% to 4.28 million. Adjusted diluted earnings reached 68 cents a share, beating the 61-cent estimate.

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Investors focused on the weaker crypto results. eToro shares fell more than 12% to about $29.80 after the earnings report.

eToro Expands U.S. Push

Despite the slowdown in crypto trading, eToro is continuing to expand its crypto and brokerage offerings. The company plans to offer onchain perpetual futures and said crypto buying power is “coming soon.”

eToro also agreed to acquire TradeZero for as much as $231 million. TradeZero generated about $80 million in revenue over the past year, giving eToro a larger presence in the US brokerage market.

The acquisition is part of a broader expansion. eToro has invested in Extended and acquired Zengo, while its purchase of Israeli crypto exchange Bit2C broadens its offering beyond traditional crypto trading.

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