From the Depths of the Sea

eToro, the stock and crypto trading platform, went public last week on Nasdaq, raising $620M in an upsized offering that was over 20 times oversubscribed. The company reached a market cap of $5.6B, while reporting $824M in net revenues for 2024 — implying a revenue multiple of 6.8x. eToro’s main competitors, Robinhood and Coinbase (now a member of the S&P 500 index), are currently trading at revenue multiples of 17.8x and 10.2x, respectively.

While eToro is undoubtedly a leading exchange, we believe that the still private Kraken stands out as the stronger platform.

Kraken is a global crypto exchange recognized for its robust security, broad asset coverage, and advanced trading capabilities. The platform operates in 190 countries and offers support for over 300 tokens and seven fiat currencies, catering primarily to active traders and serious investors. In December 2022, Kraken launched Kraken Pro — a comprehensive platform integrating spot and margin trading, staking, and portfolio management into a single interface optimized for high-volume, low-latency trading. Notably, Kraken stands out for its strict security protocols and has never experienced a major hack.

Kraken was the first cryptocurrency exchange to secure a Special Purpose Depository Institution (SPDI) charter, enabling it to serve as a direct on-ramp to the banking system and reducing its dependence on third-party banks for payment processing.

In 2024, Kraken generated impressive revenues of $1.5B on $665B in trading volume, with a healthy EBITDA of $380M.

Most recently, in March 2025, Kraken acquired the futures trading platform NinjaTrader for $1.5B, further expanding its market reach.

Remarkably, it accomplished all this having raised under $100M in VC funding — an exceptionally lean path by US VC standards.

Finally, in a sign of shifting regulatory winds, the SEC recently dropped its lawsuit accusing Kraken of operating as an unregistered securities exchange.

Conclusion

Kraken is a powerful creature of the deep.

Many doubt its existence, but Fabrica Ventures does believe.