eToro Group Ltd.

Mizuho analyst Dan Dolev says three factors support a sustained crypto rally and names Robinhood, eToro, and Bitgo as the best-positioned stocks. He notes the current rally runs on less leverage than previous ones, with coin-denominated open interest at a one-month low, indicating spot and ETF demand rather than leveraged longs. Retail trading volumes remain depressed but could provide another leg higher if ETF-led accumulation pulls activity back onto exchanges. Spot Bitcoin ETFs drew roughly $1.9 billion over the past week, the strongest weekly inflow since October 2025, led by IBIT. Dolev calls Robinhood the cleanest way to express the inflection, citing its record 40% spot retail share in the second quarter of 2026 and highest operating leverage among peers, while eToro is a contrarian value play trading near 52-week lows at under 10 times earnings despite 18% growth in funded accounts to 4.28 million, and Bitgo is the infrastructure and custody winner benefiting from institutional accumulation through ETFs.

eToro Group Ltd. reported second-quarter results and announced a deal to buy US broker-dealer TradeZero for up to $230 million in cash and stock. Net contribution rose 9% year over year to $229 million, with net trading contribution from capital markets up 25% to $142 million and funded accounts up 18% to 4.28 million. Adjusted diluted earnings per share came in at $0.68, up from $0.56 a year earlier, while crypto trading contribution fell to $11 million. The company expects the TradeZero acquisition to be accretive to adjusted earnings per share in its first full year after closing, targeted for the first half of 2027.

eToro Group Ltd. has agreed to acquire TradeZero for up to $231 million, adding an active-trader brokerage and broker-dealer infrastructure to accelerate its U.S. expansion. The consideration will consist of cash and up to 2.5 million newly issued eToro Class A common shares, with the deal expected to close in the first half of 2027 pending regulatory approvals. TradeZero generated approximately $80 million in revenue for the twelve months ended June 30, with gross margins of 81%, and the acquisition is expected to be accretive to adjusted earnings per share in the first year after completion. The deal gives eToro a more established foothold with active U.S. traders while extending its reach into Canada and other international markets, and TradeZero CEO Daniel Pipitone said joining eToro provides access to a global platform and millions of users.