Key Notes
- ARK Invest's acquisition of eToro shares is part of the firm’s diversification of its capital.
- eToro finally went public after a delay linked to US-China tariff talks.
- More crypto IPOs are expected this year from Circle but Ripple Labs has other primary focus.
Cathie Wood’s ARK Invest has purchased 140,000 shares of financial services company eToro, a major stake after the latter’s debut on Nasdaq, which also spiked the share’s price. This purchase builds on related buy ups for core crypto stocks like Coinbase’s COIN the firm has initiated thus far this year.
ARK Invest Maintains Portfolio Diversification Strategy With eToro
The acquisition of eToro shares for ARK Invest’s Fintech Innovation ETF (ARKF) is worth approximately $9.4 million.
May 14 marked the first day of trading of eToro Group Ltd, a platform for trading stocks and cryptocurrencies, on the Nasdaq exchange. The shares recorded a price jump of almost 29% on this particular day.
A single eToro share, under the ticker ETOR, closed at $67 on the first day of trading on the Nasdaq, moving from its initial offering price of $52. This suggests that the demand for the shares was more substantial than expected.
Picking up investments in newly listed companies has suddenly become a hobby for ARK Invest. When American cryptocurrency exchange Coinbase went public in 2021, the Cathie Wood company acquired 750,000 Coinbase shares. Since then, it has made more purchases of COIN in the open market. As part of its dynamic portfolio rebalancing operations, ARK Invest also frequently offloads Coinbase shares .
By diversifying its investments in these publicly listed companies, ARK Invest aims to ensure that no individual holding takes up more than 10% of a fund’s portfolio. According to the firm’s recent disclosure, ETOR is the 33rd holding within its ARKW fund, with an initial weighting of 0.93%.
eToro Goes Public After a Delay
The Israel-based company initially filed for an IPO in March after submitting a confidential filing to the Securities and Exchange Commission (SEC) in January.
However, the plans were later put on hold amid uncertainty about President Trump’s tariff-fueled market volatility. It was not until this time that the “fog” cleared that eToro decided to move ahead with the IPO plan.
The company secured $310 million by selling about six million shares, and existing investors sold an additional six million. At the IPO price, which was in the expected range of $46 to $50, eToro had a valuation of approximately $4.2 billion but ended up with a market cap of over $5.4 billion after its debut trading.
More Crypto IPOs In View In 2025
Stablecoin issuer Circle, Animoca Brands, and several other crypto-related companies intend to go public this year.
While others are clamoring for an IPO, blockchain payments company Ripple Labs Inc . is less enthusiastic about the concept. Many crypto players expected the San Francisco-based firm to go public once its lawsuit with the SEC was over.
Much to the disappointment of these entities, Brad Garlinghouse, the firm’s CEO, announced in April that the firm is currently focused on acquiring complementary companies. He did not rule out the possibility of an IPO, but it may not be as soon as many envisaged.
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