Cryptocurrency grew to account for 73 percent of trading commissions on well-known retail trade app eToro in the second fiscal quarter.
eToro revealed its second fiscal quarter results on the 25th of August, with the company registering 362 million USD worth of trading, commissions and revealing that its assets under administration had attained 9.4 billion USD.
In an investor update out on the same day, the company summarized that cryptocurrency assets made up for 73 percent worth 264.25 million USD) of commissions. The commissions have marked a whopping 2259 percent upsurge in comparison to the 11.2 million USD reported in the second fiscal quarter of last year.
Trading volumes, overall, have gone up 125 percent in the second fiscal quarter of last year, with the chief and co-founder of eToro Yoni Assia remarking in the announcement that the progress was backed by long term trends in investor behavior, and aided by offering easy access to cryptocurrency through a convenient mobile interface together with financial education. The announcement stated that cryptocurrency assets had driven total commissions in the second fiscal quarter of this year, thereby indicating strong interest coming from retail investors in cryptocurrency markets. According to the statement, interest had been diversified across the digital currencies provided by eToro with, by far, the largest trading volumes in cryptocurrencies like Bitcoin, Ethereum, XRP, Cardano, and Dogecoin.
The trading platform’s activity has developed significantly throughout the previous 12 months. In the second fiscal quarter of 2020, data shows cryptocurrencies being represented merely 7 percent of commissions, meanwhile, commodities, as well as equities, prevailed with 45 percent and 41 percent respectively. By the second fiscal quarter this year, commodities only represented 7 percent all the while equities accounted for 18 percent.
eToro also displayed significant increases in other departments in the second fiscal quarter, as net trading income reached 291 million USD. That registered a growth of 136 percent in comparison to last year. The consumer base also experienced a drastic boost, with 2.6 million newly registered users, i.e., up 121 percent when compared to last year’s second fiscal quarter.
The platform will be going public on the Nasdaq through a SPAC (or special purpose acquisition deal) worth 10 billion USD scheduled to close the current fiscal quarter.
Despite showing impressive growth, the company displayed a negative net revenue of 89 million USD. This was associated with a cashless charge of 71 million USD in equity-based compensation to workers and 36 million USD in transaction expenditures linked to the SPAC merger with FinTech Acquisition Corp. V. (or FTCVU).
