eToro Acquires TradeZero to Expand U.S. Market as Cryptocurrency Revenue Falls 30%
Trading platform eToro announced the acquisition of U.S. online brokerage TradeZero as part of its domestic expansion strategy, even as cryptocurrency-related revenue declined 30% in the second quarter year-over-year.
Strategic U.S. Expansion Announced
Digital trading platform eToro has announced plans to acquire TradeZero, a U.S.-based online brokerage, as it pursues expansion in the American market. The acquisition marks eToro’s latest strategic move to solidify its position as a comprehensive multi-asset trading platform. Earlier this year in April, eToro announced another digital assets-focused acquisition—self-custodial wallet provider Zengo—further demonstrating the company’s commitment to building out its cryptocurrency and digital assets capabilities.
Crypto Revenue Declines Amid Quarterly Challenges
eToro’s second-quarter financial results present a mixed picture for the company’s cryptocurrency operations. According to eToro’s quarterly report, cryptocurrency-related revenue fell to $1.34 billion from $1.9 billion in the comparable 2025 period, representing a 30% contraction. Total company revenue similarly declined to $1.59 billion in Q2 2026 from $2 billion the previous year. Despite these headwinds, the company generated $19.7 million in net income specifically from crypto assets, with total quarterly net income reaching $53.4 million. Equities and commodities trading proved more resilient, contributing $141 million to net income.
Trading volume on eToro’s platform weakened substantially in July, with the platform processing only 1.4 million cryptocurrency transactions—a 73% decline year-over-year. Invested amounts similarly fell 50%, underscoring challenging conditions in cryptocurrency trading activity.
Multi-Asset Engagement and Acquisition Details
Despite crypto market challenges, eToro’s user base showed consistent engagement across multiple asset classes. The company reported that over 60% of users who participated in commodities trading between Q4 2025 and Q1 2026 subsequently traded equities in Q2 2026, with nearly 90% of that group also trading cryptocurrencies on the platform during the same quarter. This cross-asset activity suggests eToro’s diversified platform approach continues attracting varied investor participation.
TradeZero, the acquisition target, generated approximately $80 million in revenue during the twelve-month period ending June 30, 2026, with 81% gross margins. eToro anticipates the acquisition will produce positive adjusted earnings per share impact in the first year following closure. Market sentiment initially proved cautious, with eToro’s Nasdaq-listed shares declining more than 5% in pre-market trading on the announcement day, extending prior session losses.
Source: eToro, via Cointelegraph. Not financial advice.