eToro plans to acquire US online brokerage TradeZero as part of its expansion in the American market, while the trading platform reported a sharp decline in cryptocurrency-related revenue during the second quarter of 2026. Total revenue fell to $1.59 billion from $2 billion a year earlier, with crypto revenue declining approximately 30% to $1.34 billion. Cryptocurrency trading activity also weakened, with total crypto trades falling 73% year over year in July, highlighting the challenges facing eToro as it expands beyond crypto into a broader multi-asset platform.
eToro Expands US Presence With TradeZero Deal
eToro is set to acquire US online brokerage TradeZero as the trading platform continues expanding its presence in the American market.
The acquisition forms part of eToro’s strategy to develop into a broader multi-asset financial platform rather than relying primarily on cryptocurrency trading.
TradeZero generated approximately $80 million in revenue during the 12 months ended June 30, 2026, while reporting an 81% gross margin.
eToro expects the acquisition to be accretive to adjusted earnings per share during the first year following the transaction.
Crypto Revenue Falls 30%
eToro reported $1.59 billion in second-quarter revenue, down from $2 billion during the same period in 2025.
Cryptocurrency assets remained the company’s largest revenue category, generating approximately $1.34 billion, compared with $1.9 billion a year earlier.
That represents a decline of approximately 30%.
The company also reported $1.35 billion in crypto-related cost of revenue and $19.7 million in net income from crypto assets.
Overall net income reached $53.4 million for the quarter.
The results show that while cryptocurrency remains central to eToro’s business, the company is facing considerably lower crypto-related activity compared with the previous year.
Crypto Trading Activity Drops
The decline in revenue was accompanied by a substantial reduction in cryptocurrency trading activity.
eToro recorded approximately 1.4 million cryptocurrency trades in July, representing a 73% decline from the same month a year earlier.
The amount invested through cryptocurrency transactions also declined by approximately 50%.
The figures suggest that weaker trading activity, rather than simply changes in the composition of eToro’s business, is playing an important role in the decline in cryptocurrency-related revenue.
eToro Pushes Further Into Multi-Asset Trading
The company has increasingly positioned itself as a multi-asset platform as it seeks to reduce its dependence on any single investment category.
eToro has been expanding its offerings across cryptocurrencies, equities and commodities.
Equities and commodities-related trading generated approximately $141 million in net income during the quarter.
Meron Shani, eToro’s chief financial officer, said users increasingly move between different asset classes on the platform.
More than 60% of users who traded commodities between the fourth quarter of 2025 and first quarter of 2026 subsequently traded equities in the second quarter of 2026. Nearly 90% of those users also traded cryptocurrency on eToro.
The cross-asset behavior supports eToro’s strategy of encouraging customers to use the platform for multiple types of investments.
Zengo Acquisition Adds Self-Custody
eToro is also expanding its cryptocurrency infrastructure.
In April, the company announced plans to acquire self-custodial wallet provider Zengo, adding wallet technology to its broader digital asset strategy.
The move gives eToro another way to participate in cryptocurrency beyond conventional trading and could support its goal of creating a broader digital asset ecosystem.
The TradeZero acquisition similarly expands the company’s traditional brokerage capabilities in the US.
Shares Fall as Crypto Activity Weakens
eToro’s Nasdaq-listed shares fell more than 5% in premarket trading on Tuesday, extending the previous day’s decline.
The market reaction comes as investors assess the company’s weaker cryptocurrency activity alongside its efforts to diversify its revenue base.
The combination of declining crypto trading and acquisitions in traditional brokerage and self-custody services illustrates eToro’s changing business model.
Closing Insights
eToro’s second-quarter results highlight the challenge of maintaining cryptocurrency-driven growth while expanding into a broader financial services business. Crypto revenue fell about 30%, while July trading activity declined sharply, but the company continues to invest in equities, commodities, self-custody and US brokerage services. The planned TradeZero acquisition could strengthen eToro’s position in the US and further accelerate its transition toward a multi-asset platform, potentially reducing its dependence on cryptocurrency trading over time.
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