eToro's crypto trades fell 73% in July; average investment halved. The firm announced a $231M deal for TradeZero to expand into US stock trading. Net income rose 77% in Q2.
eToro users executed 1.4 million crypto trades in July, down 73% from a year earlier. The average amount invested per trade fell to $182, the company reported in an Aug. 11 filing.
The same update showed eToro agreed to pay up to $231 million for TradeZero, a US brokerage that serves active stock traders. TradeZero generated roughly $80 million in revenue over the 12 months ended June 30 and recorded an 81% gross margin in the second quarter, according to eToro.
The combination widens eToro's footprint beyond crypto and multi-asset trading. It does not signal distress. Net contribution rose 9% to $229 million in the second quarter. GAAP net income jumped 77% to $53 million. Management said stronger equity trading helped offset a weaker crypto contribution, without quantifying the shift.
Crypto accounting at eToro requires a close look. The company reported $1.346 billion in second-quarter cryptoasset revenue, but that top-line figure came with $1.354 billion in cryptoasset cost of revenue. Net trading income from crypto derivatives was $19.7 million. Combined with other crypto contributions, the net trading contribution from cryptoassets was about $12.5 million before operating costs. That is not segment profit.
TradeZero brings broker-dealer infrastructure, proprietary tools, and a community of active US stock traders. eToro expects the deal to close in the first half of 2027, subject to regulatory approvals and purchase-price adjustments. The company will pay cash and issue up to 2.5 million new Class A shares.
This push into US equities does not mean eToro is abandoning crypto. In April, it struck a deal to acquire Zengo, a crypto wallet provider, to deepen self-custody and on-chain capabilities.
eToro held $1.2 billion in cash and short-term investments at June 30. The TradeZero acquisition still needs clearance. If it closes as planned, the brokerage could reduce eToro's reliance on any single asset class.
For more on the broader trend of retail activity shifting between crypto and equities, see crypto market analysis.
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