eToro, an Israel-based stock and crypto-trading platform, has agreed to acquire Gatsby, a Robinhood competitor, for $50m in cash and stock. This deal pulls eToro deeper into the U.S. market and allows the company to offer options trading — the largest source of revenue for Robinhood.
“The integration of Gatsby will allow us to provide U.S. users with a safe and simple way to trade options, and give them more flexibility to use new strategies,” Assia said. “We believe that options can offer retail investors opportunities to generate returns in today’s more challenging market environment. Scaling our U.S. business is a key goal and we are excited to be partnering with the Gatsby team.”