EToro (ETOR) doubled down on its crypto commitment even as digital asset activity weakened in the first quarter and April.
Crypto asset revenue fell 38% from the previous quarter to $2.15 billion, the company said in its first-quarter earnings report released Tuesday. Net trading income from crypto derivatives fell 57% to $33.4 million, while overall net profit increased 37% to $82.4 million.
The trading platform said the decline in crypto activity extended through April, with the total number of crypto transactions falling 32% year-over-year and the amount invested per transaction falling 22%. Despite the economic slowdown, CEO Yoni Assia expressed an optimistic outlook.
“We expect that later this year, cryptocurrencies will start to return to near all-time highs, which will drive crypto engagement,” Assia told CNBC, adding that the platform’s data suggests that when markets fall, “retail investors on eToro actually buy the dip.”
The company said it activated its BitLicense to begin trading in New York, three years after it was granted, and completed the $70 million acquisition of crypto wallet provider Zengo, which closed on April 30.
“The acquisition of Zengo, a leading provider of self-custodial crypto wallets, significantly advances our strategy of bridging traditional finance with on-chain infrastructure, prediction markets, perpetuals and the broader crypto ecosystem,” Assia said in the report.
Etoro shares fell 0.61% in pre-market trading on Wednesday.
