Q2 2021 turned out to be a comparatively strong quarter for multi-asset investment platform eToro. Earlier today, the company announced its second-quarter earnings, revealing a total trading commission of $362 million up by 125% from last year. Drawing on its latest growth tracks, it is worth noting that eToro now has $9.4 billion assets under management.
Interestingly, crypto represents 73% of the company’s entire trading commission. While eToro posted $11.2 million in crypto trading revenue in the year ago period, this year, the platform has inched a massive record in its crypto revenues this year with the figure pegged at $264.2 million.
By How Far did Crypto Transactions Jump?
A worldwide increase in crypto adoption has immensely benefited crypto-based companies. Retail investors are extensively hoping into the space with diversified interests. eToro, for instance, has revealed in its Q2 earnings report that digital asset trading surged by nearly 23-folds on its platform. Bitcoin (BTC), XRP, Ethereum (ETH), Cardano (ADA), and Dogecoin (DOGE) were the prime focus for traders. Per the company, XRP brought up the maximum commissions while bitcoin had the highest trading volume.
In addition to this, eToro registered 2.6 million new users. The platform posted a net loss of $89 million caused by a non-cash penalty of $71 million in stock-based compensation and a $36 million transaction fee associated with one of its upcoming mergers. Adjusted EBITDA came in at $33 million.
eToro’s CEO, Yoni Assia is optimistic about Q2 2021 earnings. He said the firm is “foreseeing a positive momentum. Our Q2 earning demonstrates continued growth in new registered users and total commissions.”
Assia also gave an insight to eToro’s future strategy, saying he believe that investors need three things from a crypto investment platform which borders on the ease of access to cryptoassets, a user-friendly and intuitive mobile interface, and financial education with insights from other investors. Drawing on this, he noted that the firm “aim to provide all three within our platform, and we’re sure that we will lead the investment space and continue to grow eToro’s share in the market.”
eToro has witnessed increased crypto trade activity over time, moreover, this year eToro’s total commission was massively driven by crypto assets. Keeping all of this under notice, the platform introduced 10 new crypto assets in recent months like Dogecoin and Shiba Inu. It is also worth noting that the platform enabled the consumers for staking in ETH 2.0.
At present, there is no clear information regarding eToro’s Q3 earnings, however, experts anticipate that this current quarter will be a stronger one and crypto-assets will probably drive the earnings upward.