Crypto trading volume on the eToro platform collapsed to 1.4 million transactions in July - down 73% compared to last year. Facing this situation, eToro maneuvered by announcing a plan to acquire TradeZero, a US-based online broker.
This decline in transactions hit eToro’s crypto books, with revenue dropping 30% compared to the second quarter of 2025. Total user investment funds in digital assets on their platform were also cut in half. In contrast, the stock and commodity business lines have now become the main support, contributing $141 million in net revenue.
Targeting High Margins in the United States
Through the acquisition of TradeZero, eToro aims to strengthen its foothold in the US market while attracting new cash flows. Over the 12-month period ending June 30, 2026, TradeZero recorded approximately $80 million in revenue with an 81% gross margin.
eToro’s management believes that the addition of TradeZero will be accretive - boosting adjusted earnings per share (EPS) in the first year after the transaction is completed. The deal is targeted to officially close in the first half of 2026.
Internal Data: Crypto Users Shift to Stocks
eToro’s move to prioritize expansion into traditional assets aligns with shifts in customer behavior. The company’s internal data shows a clear shift in interest. More than 60% of eToro users who actively traded commodities between the fourth quarter of 2025 and the first quarter of 2026 went on to trade stocks in the second quarter of 2026.
The most interesting part of this trend lies in the track record of these users: nearly nine out of ten in this group had a history of trading crypto on eToro. This figure indicates that eToro’s digital user base does not just sit idle during market downturns, but instead seeks profit opportunities in other asset classes.
Can This Move Convince Investors?
TradeZero is not eToro’s only acquisition target this year. In April, the company also announced plans to acquire Zengo, a self-custodial crypto wallet provider. The purchase of these two entities in both the traditional and crypto sectors highlights efforts to restructure its service offerings.
Despite eToro’s active expansion efforts, the public has not yet reacted positively to these moves. ETOR shares listed on the Nasdaq exchange fell more than 5% during Tuesday’s pre-market session, extending losses from Monday. Shareholders seem to still be weighing whether the broker acquisition is worth the revenue gap left by crypto traders. Reported by Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
