eToro Snaps Up Zengo for $70M to Dominate Self-Custody Crypto Market
eToro is acquiring self-custodial wallet provider Zengo in a strategic push to capture more crypto-native users and expand its on-chain infrastructure. Bloomberg reports the deal is worth approximately $70 million, primarily in cash, positioning eToro to deepen its foothold in digital assets at a c
eToro is acquiring self-custodial wallet provider Zengo in a strategic push to capture more crypto-native users and expand its on-chain infrastructure. Bloomberg reports the deal is worth approximately $70 million, primarily in cash, positioning eToro to deepen its foothold in digital assets at a critical moment for the trading platform.
The Acquisition: What It Means
The move signals eToro's pivot toward self-custody—a key differentiator in crypto trading. By integrating Zengo's wallet technology, eToro gains access to infrastructure for tokenized assets, prediction markets, perpetuals, and yield products. This acquisition reflects a broader industry trend: brokerage platforms recognizing that crypto-native users demand more than traditional trading interfaces.
The timing matters. Crypto has become a revenue powerhouse for eToro—the platform generated $12.98 billion from crypto assets out of its total $13.8 billion revenue in 2025. That's 94% of revenue tied directly to digital assets, making this Zengo acquisition a natural extension of where the money flows.
CEO's $250K Bitcoin Call Amid Market Skepticism
At Paris Blockchain Week, eToro CEO Yoni Assia doubled down on an aggressive Bitcoin price target, predicting BTC will eventually exceed $250,000 after another quarter of downside pressure. "Bitcoin is on the path eventually to $250,000, $500,000 and beyond," Assia said during a fireside chat.
He's not alone. Arthur Hayes (BitMEX co-founder) and Robert Kiyosaki (Rich Dad Poor Dad author) have made similar calls. But here's the tension: Galaxy Digital is urging caution, describing the year ahead as "too chaotic to predict" due to US midterm elections and shifting monetary policy. The four-year crypto cycle theory that once seemed bulletproof is now contested by major players.
What a $250K Bitcoin Really Means
Let's be direct about the math: reaching $250,000 per Bitcoin requires a 3.3x price increase from current levels. That translates to approximately a $5 trillion market capitalization, making BTC the world's second-largest asset after gold. Currently, Bitcoin ranks 12th globally by market cap. That's not just a bull case—it's a complete repricing of how markets value crypto as an asset class.
Alpha Take
eToro's Zengo acquisition isn't just about adding wallet features—it's a bet that self-custody becomes table stakes for competitive trading platforms. With crypto representing 94% of eToro's revenue, this $70M investment is cheap insurance against losing market share to more crypto-native competitors. Assia's $250K Bitcoin target remains speculative given macro headwinds, but it reflects management's conviction that crypto volatility creates buying opportunities for platforms positioned to capture them.
Originally reported by
CoinTelegraph
Not financial advice. Crypto investing involves significant risk. Past performance does not guarantee future results. Always do your own research.