Cathie Wood's ARK Invest Buys $9.4M in eToro Shares on 29% IPO Surge

Cathie Wood, the CEO of ARK Invest, swiftly acquired a significant stake in eToro, a newly listed trading platform, following its public debut. ARK’s Fintech Innovation ETF (ARKF) purchased 140,000 shares of eToro (ETOR) on Wednesday, valued at approximately $9.4 million at eToro’s closing price of $67.

eToro made a strong entrance onto the Nasdaq, pricing its IPO at $52, which was above the expected range of $46 to $50. ETOR shares surged nearly 29% to close at $67 on its first day of trading. The IPO raised $620 million by selling 11.9 million shares, indicating a high demand for ETOR shares that exceeded early forecasts.

ARK Invest’s acquisition of eToro shares aligns with its existing investments in fintech and cryptocurrency platforms, such as Coinbase (COIN) and Robinhood (HOOD). eToro’s platform, which offers commission-free stock trading, cryptocurrency services, and social trading features, fits well with ARK’s strategy of investing in disruptive technologies. This move underscores ARK’s confidence in eToro’s potential to become a major player in the fintech industry.

eToro’s financial performance leading up to its IPO was impressive. The company serves over 40 million users across 75 countries. In 2024, eToro’s revenue skyrocketed to $12.64 billion, up from $3.89 billion the previous year. Net income also saw a significant increase, reaching $192.4 million compared to $15.3 million in 2023. This rapid growth contributed to eToro’s successful IPO, making it one of the largest fintech debuts in recent years.

eToro’s successful first day on the Nasdaq could signal a resurgence in the fintech IPO market, which has been relatively quiet for months. Traders and investors will be closely watching to see if ARK’s early investment in eToro pays off, potentially leading to more fintech companies following suit. ARK Invest is known for its long-term investment strategy, and if history is any indication, the firm will likely hold onto its eToro shares, allowing the long-term trend to drive its value.