Over the course of 2020, eToro has grown in size, as Asia explained: “We have grown by more than 147% compared to the previous year,” he says. The mainstream and bull market for cryptocurrencies was in full swing this year, plus “the biggest discussion we’ve seen in human history at the intersection of social media and investment platforms” – all of it boiled down to form Asia’s brand as a “perfect storm” and added:
“We see tremendous global interest from people who want to participate in global markets, which has been our initial vision since 2017 when we started our work to open global markets for everyone to trade and invest in a simple and transparent way.”
Bitcoin (BTC), like the rest of the cryptocurrency market, turned into a special year in 2020 after rapidly recovering from a massive drop in prices around the same time, as COVID-19 concerns intensified in March 2020. Major markets also grew in 2020. Bitcoin gained momentum at the end of the year and reached an all-time high in 2017 before continuing to rise dramatically. So far, 2021 has seen a continuation of the major and emerging cryptocurrency markets.
On March 16th, eToro announced plans to announce its business on the Nasdaq exchange through a specialized acquisition company, or SPAC. It is basically a type of merger in which a private company is merged with an already defined public company (SPAC company) and becomes public in a way that is less direct than a listing on a stock exchange.
“When your business grows faster than expected, it is always right to make sure that you are fully prepared for the next phase of growth as a larger company, as an open market company,” said Assia. “We are very excited about this next step in growth.”
Crypto exchange Coinbase plans to take over its business through a direct listing on the Nasdaq exchange in April 2021. Instead, Diginex, a company focused on digital assets, was announced on the Nasdaq exchange in October 2020 via SPAC.
According to Assia, EToro has announced its intention to purchase and merge with SPAC called Fintech V. “We want to merge with this company, actually buy this company and get it listed on the eToro exchange,” he said. Officially known as Fintech Acquisition Corp V, SPAC is currently listed on the Nasdaq under the ticker symbol FTCV.
“When SPAC announces business combination agreements, SPACs are already traded, so retail investors have the opportunity to invest in SPAC after the announcement under the SPAC index,” said Asia.
Basically, this method of becoming an interested exchange gives you an opportunity to indirectly invest in a private company immediately after announcing its intention to go public, even if it is not technically registered as a stock, according to the Asia interpretation. … the investor will buy the corresponding stake in SPAC, which will ultimately become an ownership interest in a private company. Usually, if a company was listed on a stock exchange, investors had to wait until the company’s private shares were listed and then buy the shares when listed.
On the topic: A catalytic event or wild optimism? Coinbase’s Public Listing Approach
Assia said, “During the next two months, as we review the process of terminating the merger agreement, we will primarily be a company listed on the Nasdaq Stock Exchange.” While Assia said the company does not yet have a new tape that has expired at the time of the interview, eToro will not be using FTCV as its tape. He said, “We haven’t decided on this yet.” “We cannot share what we haven’t decided yet, such as when you are pregnant with a child,” he explained, laughing.
What’s the general change for eToro compared to today’s business? “For the most part, I think our daily business will remain very similar,” said Asia, citing customers, ongoing technology developments and products that eToro will continue to focus on. he added:
“When we close the agreement and accept a $ 650 million PIPE private equity investment and a $ 250 million SPAC into the company’s balance sheet, we will have a very strong balance sheet given the potential acquisitions. A more robust geographic expansion – whether a strong expansion in the US Or other markets. “