eToro’s Q2 Crypto Income Skyrockets: Up 23X Compared to Last Year

August 28, 2021, 10:30 AM AEST - 1 month ago

Israel-based social trading and multi-asset brokerage company eToro has posted a set of strong Q2 results, which includes exponential growth in crypto-trading income.  

Breakdown of total commissions. Source: eToro Q2 results

Crypto Accounts for 73% of Trading Commissions

As noted in the illustration above, eToro’s year-on-year crypto trading commission increased from seven percent to 73 percent of total trading commissions. To provide some context, there were US$264 million in total crypto commissions, some 23 times larger than the US$11.27 million in crypto-linked charges in Q2 2020. While such growth is in itself impressive, it has no doubt been fuelled by the incredible growth in crypto adoption over the past year.

Cryptoassets drove total commissions in the second quarter of 2021, reflecting retail investors’ strong interest across the cryptos offered by eToro.

CEO Yoni Assia

Interestingly, Bitcoin represented only seven percent of total commissions in Q2, despite amounting to one-fifth of total trading volume and assets under administration. Such trading volume figures are likely a reflection of BTC’s relative underperformance of late, at least compared to some of the altcoins.

Commission by crypto asset. Source: eToro Q2 results

eToro Expands To Provide ‘Holistic’ Crypto Offering

In recent months, the company extended its crypto asset base to include 10 new digital assets, including memecoins such as Dogecoin and Shiba Inu. This brought the total number of crypto assets available across the eToro platform and exchange to 29.

In addition, the company noted it had launched ETH 2.0 staking, which is being rolled out on a country-by-country basis. The platform is designed to enable users who own ETH, ADA and TRX to earn staking rewards proportional to the amount of underlying crypto assets held.

While crypto has been a significant source of growth, eToro also posted large increases in other areas in Q2 as net trading income grew to US$291 million, up 136 percent compared to last year. In addition, its user base also saw an impressive boost, with 2.6 million new registered users, up 121 percent compared to Q2 2020.

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