eToro’s crypto business moved to a $7.2 million loss in the second quarter as activity in digital assets weakened from a year earlier, even while the broader trading platform delivered stronger overall results.
The company said cryptoasset revenue for the quarter fell to $1.35 billion from $1.91 billion in the same period last year. The drop was tied to softer trading volumes, with both the number of crypto trades and average trade size falling sharply.
Crypto segment weakens
The slowdown was visible in eToro’s latest activity figures. In July, the platform recorded 1.4 million crypto trades, a 73% decline from a year earlier.
Average crypto trade size also dropped, falling 50% to $182. Taken together, those figures point to a much quieter market for the company’s digital-asset business than it saw in the prior-year period.
Broader results remain stronger
Outside crypto, eToro reported growth across key business measures. Total net contribution increased 9% to $229 million, and the number of funded accounts rose 18% to 4.28 million.
The company also reported adjusted diluted earnings of 68 cents a share, ahead of the 61-cent estimate. Those results suggest weakness in crypto did not prevent the wider platform from improving year over year.
Expansion plans continue
Despite the decline in crypto trading, eToro said it is still expanding its product lineup. The company plans to offer onchain perpetual futures and said crypto buying power is coming soon.
It is also pushing further into the US market through a deal to acquire TradeZero for up to $231 million. According to the company, TradeZero generated about $80 million in revenue over the past year, giving eToro a larger foothold in the US brokerage business.
Recent deals shape the next phase
The planned TradeZero acquisition forms part of a broader expansion effort. eToro has also invested in Extended and acquired Zengo, while its purchase of Israeli crypto exchange Bit2C adds to its business beyond traditional crypto trading.
The next confirmed steps are the rollout of the new crypto features the company has outlined and the completion of the TradeZero deal, both of which will show how eToro is positioning itself while crypto trading remains subdued.
Source: Coin Edition