eToro Turns Crypto Trading Loss-Making as TradeZero Deal Nears

eToro’s crypto arm brought in less in Q2, while stock trading and funded accounts supported the results. At the same time, the TradeZero acquisition is getting closer and the platform is pushing into onchain perpetuals.

Key Takeaways

• eToro posted a $7.2 million crypto loss in Q2 2026, compared with $37.7 million in profit a year earlier.
• Crypto market activity slowed, with 1.4 million trades in July and an average trade value of $182.
• Stronger stock trading and more funded accounts helped net contribution rise to $229 million.

eToro posted a loss on its crypto trading in the second quarter of 2026, while total profit came in above expectations. The Tel Aviv-based trading platform saw crypto market activity cool off, but partly offset that with stronger performance in stock trading and a growing number of funded accounts.

Crypto Trading Slips Back

eToro’s crypto trading came in at a loss of $7.2 million (€6.2 million) in Q2, compared with a profit of $37.7 million (€32.7 million) a year earlier. Revenue from crypto assets fell to $1.35 billion (€1.2 billion), about 29 percent lower than the $1.91 billion (€1.7 billion) in the same period last year. Costs stayed high too: cost of revenue from crypto assets also came in at $1.35 billion (€1.2 billion).

The slowdown was also visible in July. eToro reported 1.4 million crypto trades, down 73 percent year over year, while the average crypto trade fell 50 percent to $182 (€158). That fits a broader drop in activity, after the company already reported a sharp decline in crypto-related revenue in the first quarter.

Profit Comes From Other Businesses

Despite the weaker crypto arm, eToro’s net contribution rose 9 percent year over year to $229 million (€198 million). Stock trading was the main driver. The number of funded accounts climbed to 4.28 million, up 18 percent.

Adjusted diluted earnings per share came in at $0.68 (€0.59), above analysts’ estimate of $0.61 (€0.53). The stock, however, dropped sharply after the release and was trading more than 12 percent lower in the hours after the numbers, around $29.80 (€26).

New Step Toward Onchain

At the same time, eToro is trying to expand its crypto offering further. The company is working on onchain perpetual futures and says crypto buying power is “coming soon.” Earlier this year, eToro also bought Zengo, a self-custodial crypto wallet provider, for $70 million (€60.7 million). That move fits into a broader strategy to connect traditional financial services with onchain infrastructure and new trading formats like prediction markets and perpetuals.

Why This Matters for Europe

For European crypto followers, this update shows how quickly trading volumes can shift between crypto and traditional markets. It is also a sign that major platforms are broadening their offerings toward onchain products and wallets, while still depending on the broader market cycle. The announced acquisition of TradeZero, a U.S. broker, also underscores that distribution and access to multiple investment products are becoming more important for international crypto exchanges. That fits a broader trend in which major platforms expand into stocks and derivatives to keep users engaged when crypto trading cools off.