Catenaa, Tuesday, May 19, 2026- eToro reported a sharp decline in cryptocurrency trading activity during the first quarter of 2026 as softer digital asset markets weighed on revenue across the sector.
The company said crypto related revenue dropped to $2.15 billion from $3.5 billion a year earlier, while the total number of crypto trades fell 32% year over year.
The Israeli based brokerage published its latest quarterly financial results highlighting weaker crypto performance despite continued investment in blockchain infrastructure and digital asset services.
During the quarter, eToro completed a $70 million acquisition of crypto wallet provider Zengo and expanded crypto trading services into New York after securing a BitLicense several years earlier.
The company said its broader strategy focuses on integrating traditional finance with blockchain based services including self custody wallets, onchain infrastructure, prediction markets and perpetual futures products.
Although crypto trading slowed, eToro’s balance sheet crypto holdings declined only slightly to $60.5 million from $62.6 million at the end of 2025.
The company also reported a large reduction in crypto related costs, with cost of revenue from crypto assets falling to $2.1 billion from $3.5 billion during the same period last year.
The results add to signs of broader cooling across crypto trading markets during the first quarter despite continued long term institutional investment into blockchain infrastructure.
Several major trading platforms already reported weaker crypto volumes this earnings season. Robinhood Markets disclosed crypto trading revenue and volumes declined roughly 50%, while Coinbase posted a quarterly net loss exceeding $394 million.
Analysts said lower volatility and reduced speculative activity likely contributed to declining retail trading participation across digital assets during the period.
At the same time, eToro’s diversified trading model helped offset crypto weakness. Commodities trading volumes surged fourfold year over year and represented roughly 60% of overall trading commissions.
The platform also introduced 24 hour trading for selected commodities, equities and indices as part of broader efforts to expand multi asset trading activity.
eToro Chief Executive Yoni Assia said the Zengo acquisition strengthens the company’s push toward integrating traditional finance with blockchain infrastructure and decentralized technologies.
Researchers tracking retail investing trends noted that many online trading platforms increasingly depend on diversified revenue streams as crypto market cycles become more volatile and unpredictable.
Financial analysts also highlighted eToro’s improving profitability despite weaker crypto activity. Adjusted EBITDA rose 35% year over year to $109 million, while net income increased 37% to $82 million.
Industry observers said artificial intelligence based investing tools and self custody crypto products may become larger competitive areas among retail brokerages during the coming years.
eToro’s latest earnings reflect how crypto trading platforms are adapting to slower digital asset markets by expanding beyond pure cryptocurrency exposure.
While speculative trading activity cooled during the quarter, firms continue investing heavily in blockchain infrastructure, self custody services and broader financial technology ecosystems.
The results also underscore how multi asset trading platforms increasingly rely on diversification to navigate shifting market conditions across crypto, commodities and traditional finance.
eToro became one of the largest retail social trading platforms globally by combining cryptocurrency, stock and commodity trading inside a single application.
The company expanded heavily into crypto markets during earlier digital asset booms as retail investors increasingly sought exposure to Bitcoin and alternative cryptocurrencies. Crypto exchanges and trading platforms experienced major growth during periods of heightened volatility and speculative participation, although trading activity historically declines during quieter market phases.
Self custody wallets gained importance after several major exchange collapses increased demand for direct user control over crypto assets.
At the same time, online brokerages increasingly diversified into commodities, AI powered trading tools and tokenized finance products to reduce reliance on cryptocurrency market cycles. The broader crypto sector has recently experienced slower trading activity despite continued institutional investment in blockchain infrastructure and digital financial services.
