Currently, the eToro invest platform aiming to go live soon with a total of $10.4 billion valuations has seen an explosive increase in the total income generated from the commissions charged on the platform for crypto trades in the second quarter of the year.
The latest results of the firm in the second quarter were announced on the 25th of August, and it shows that 73% of the total revenue was generated from the commission charged for using the exchange for crypto trading. In retrospect to Q2 2020, the commission charged from transactions represents about 7% of the total revenue in the quarter.
The total amount generated through commissions in the second quarter was about $362 million compared to the $161 million realized in total in the same period last year. This represents $264 million in crypto commissions – a total of 2300% increase when compared to the $11.27 million generated from transaction charges in the second quarter of last year.
The analysis of the leading tokens traded in the exchange shows that several crypto varieties contributed to the explosive increase. For example, BTC held about 7% of the total figure and yet is less than half of the revenue generated from XRP, ETH, and ADA or even DOGE that was just listed on the platform in May.
The CEO and the co-founder of eToro, Yoni Assia, said in a statement that “the increase in intuitive investing and the eventually the growth of eToro is dependent on the behaviour of the investors per time.” He believes that investors are looking for three things on any given exchange, and they include a wide range of crypto options, a mind-blowing user experience, and up-to-date financial education tools.
Analyzing the SPAC Losses
Other areas on eToro also saw an increase in their volumes. But remarkably, the crypto exchange processed about 127 million trades in that quarter compared to the 74 million trades facilitated in the second quarter of the previous year.
However, irrespective of the surge in crypto and other assets trading on eToro, there was a net loss of $89 million in the second quarter announced. The loss was attributed to the non-cash charge of about $71 million for staff compensation incurred and a total of $36 million transition cost spent on the coming SPAC (Special Purpose Acquisition Company) merger.
Earlier in March, the company announced its intention to merge with V, a blank cheque firm managed by Betsy Z. Cohen, the founder of Bancorp. This SPAC listing brought eToro to its $10.4 billion valuations, including commitments for the private investors’ placements worth $650 million, including investment with ION Investment Group, Fidelity Management & Research Company LLC, Softbank Vision Fund 2, and Wellington Management Company.