The commission-free cryptocurrency trading app, eToro, announced plans today to merge with Fintech Acquisition Corp. V (NASDAQ: FTCV).
FTCV is a special-purpose acquisition company, or SPAC, headed by Betsy Cohen. Cohen is the founder of The Bancorp and her “achievements have been widely recognized by some of the nation’s most prestigious organizations and publications” according to her company profile.
A special-purpose acquisition company is a nontraditional way for a company to begin trading publicly. The SPAC has an initial IPO and sells shares to raise capital. The capital raised is then used to buy or merge with an existing business.
eToro has seen record growth in the past year. On Tuesday, CNBC host David Faber noted, “press reports had this company being valued at roughly $5 billion.” But the deal, which is expected to close in the third quarter of 2021, values the company a double that figure.
eToro offers its users the option to trade some of the biggest names in cryptocurrency. Current offerings include Bitcoin, Ethereum, and Litecoin.
eToro’s website includes a photo of celebrity Alec Baldwin appearing to showcase the app. The site also includes a note about apparent plans to increase its offerings in the future, saying “Stocks? They’re coming.”
During a CNBC interview, Cohen was quick to compare eToro to Robinhood, but the crypto trading app is trying to stand out from its competition. One of the most unique features eToro offers is the “Copy Trading” feature, which, according to eToro’s website, allows users to “leverage other crypto traders’ expertise” by automatically copying the trades other users make.
Demand for FTCV stock exploded during Tuesday’s trading session. At writing, trading volume exceeds 33 million shares, with the share price soaring as much as 38%.
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