eToro reports strong growth across crypto trading in Q3 as costs keep pace with revenue
eToro's crypto division saw significant revenue growth in Q3, though high costs nearly negated the gains, resulting in a net loss from derivatives trading.Summary
The Tel Aviv-based trading platform eToro reported substantial growth in its crypto division during the third quarter, driven by the addition of new digital assets and staking services. Cryptoassets revenue reached $3.97 billion, a significant jump from $1.4 billion year-over-year. However, the cost of revenue for this vertical was $3.89 billion, meaning the platform generated almost no net income from crypto asset trading, leading to a net loss of over $18 million from crypto asset derivatives trading.
eToro, which went public in May at a $4.2 billion valuation, expanded its U.S. crypto offering from 3 to 110 assets and launched staking for Cardano, Ethereum, and Solana, fueling growth in new funded accounts. The company noted that in the preceding month, total trades and invested amounts rose 84% and 52% year-on-year, respectively.
Overall, eToro posted a consolidated net income of $56.8 million for Q3, with assets under administration (AUA) increasing 73% year-over-year to $20.5 billion.
(Source：The Block)