eToro's Crypto-Centric Growth Strategy: Can Staking and AI-Powered Tools Drive Long-Term Value?

eToro has positioned itself as a pivotal player in the crypto ecosystem, leveraging staking services, AI-driven tools, and infrastructure expansion to capture a growing retail investor base. As the platform navigates the volatile crypto landscape, its ability to balance innovation with risk management will determine whether these strategies translate into sustainable value creation.

Staking Services: A Passive Income Play for Retail Investors

eToro's launch of staking services for U.S. users in September 2025 marked a significant milestone, enabling investors to earn monthly rewards on assets like Cardano (ADA), Ethereum (ETH), and Solana (SOL), according to a press release. This initiative aligns with the platform's mission to democratize access to crypto opportunities, particularly for retail investors seeking passive income. By staking eligible assets, users not only generate yield but also contribute to blockchain network security, fostering a symbiotic relationship between eToro and its user base.

The impact of staking has been tangible: eToro reported a 76% surge in assets under administration to $20.8 billion in Q3 2025, alongside an 84% year-over-year increase in crypto trades to 5 million, according to a press release. These figures underscore the growing appeal of staking as a value proposition, particularly in a market where yield generation remains a key driver of adoption.

AI-Powered Tools: Enhancing Decision-Making in a Volatile Market

eToro's AI-driven innovations, such as Tori, an AI-powered analyst, have further solidified its position as a tech-forward platform. Tori provides personalized investment insights, helping users navigate the complexities of crypto and traditional markets. By Q4 2025, AI tool usage among U.S. retail investors surged 75% year-over-year, with 30% of users relying on these tools for portfolio decisions, according to a press release. Notably, millennials-eToro's core demographic-showed a 28% increase in AI adoption, with 88% now using such tools compared to 70% in 2024, according to a press release.

The popularity of AI tools reflects a broader trend: retail investors increasingly seek data-driven guidance to mitigate the risks of market volatility. However, the efficacy of these tools hinges on their ability to adapt to rapidly shifting conditions, a challenge eToro must address to maintain user trust.

Infrastructure Expansion: Tokenization and Global Reach

eToro's infrastructure expansion is poised to redefine its role in the fintech ecosystem. The platform plans to launch a crypto wallet offering access to prediction markets, tokenization services, and lending products, according to a press release. Additionally, eToro is tokenizing 100 U.S.-listed stocks and ETFs as ERC-20 tokens on Ethereum, enabling 24/5 on-chain trading, according to a press release. These initiatives aim to bridge traditional and digital finance, potentially unlocking new revenue streams while catering to a global user base spanning 75 countries, according to a Q3 earnings report.

The tokenization of stocks and ETFs, in particular, could enhance liquidity and reduce barriers to entry for investors unfamiliar with crypto. However, the success of this strategy depends on regulatory clarity and user adoption, both of which remain uncertain.

Financial Performance and Hedging Challenges

Despite robust growth, eToro faces significant hedging challenges. In Q3 2025, crypto derivatives hedging expenses totaled $3.89 billion-nearly matching the $3.97 billion in crypto-related revenue-and resulted in a net loss of $18 million for the segment, according to a Q3 earnings report. This highlights the inherent risks of managing a volatile asset class, where hedging costs can erode profitability.

eToro's response has included a $150 million share repurchase program, according to a Q3 earnings report, signaling confidence in its long-term prospects. However, the platform must balance innovation with operational resilience, particularly as it expands into new markets and product lines.

Assessing Long-Term Value

eToro's crypto-centric strategy is undeniably ambitious. Staking and AI tools have driven user engagement and revenue growth, while infrastructure expansion positions the platform to capitalize on tokenization and global adoption. Yet, the high costs of hedging and regulatory uncertainties pose existential risks.

For investors, the key question is whether eToro can scale its innovations without compromising profitability. The platform's ability to refine its risk management frameworks-such as leveraging derivative instruments like Spot-Quoted crypto futures (SQFs) to hedge price fluctuations, according to a Q3 earnings report-will be critical. If successful, eToro could emerge as a leader in the democratization of finance. If not, its growth may falter under the weight of its own ambition.