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What happened
S&P 500 modestly lower and the
Nasdaq Composite down by more than 1% ahead of the Federal Reserve s latest interest rate decision and projections.
However, one SPAC was a big underperformer. Shares of
Fintech Acquisition Corp V (NASDAQ:FTCV), which recently announced its intention to take multi-asset brokerage platform eToro public, were sharply lower. As of 11:30 a.m. EDT, shares were down by more than 13%.
Why SPAC Stock FinTech Acquisition Corp V Skyrocketed Today fool.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fool.com Daily Mail and Mail on Sunday newspapers.
The so-called social investment platform had a very good year. eToro lets users invest in a range of assets - including stocks, commodities and cryptocurrencies
The deal with FinTech Acquisition Corp. V will value the combined company at about $10 billion, the people said, asking not to be identified because the matter is private. The companies are raising about $650 million in equity to support the deal, which could be announced as soon as Tuesday, they said.
Representatives for eToro and FinTech Acquisition V declined to comment.
The company became a member of the U.S. Financial Industry Regulatory Authority Inc., or FINRA, in the last year and is expected to start providing stock trading service in the U.S. in 2021, the people said.
eToro has 20 million registered users in dozens of countries, according to its website. Founded in 2007, it expanded into the U.S. in 2018.
The company has over 20 million registered users, according to its investor presentation.
In 2019, eToro added an average of 192,000 new users each month. That figure jumped to an average of 440,000 in 2020.
eToro users made over 75 million trades in the month of January 2021. That marked a significant inscrease from the 8 million and 27 million average monthly trades in 2019 and 2020, respectively.
Growth Ahead For eToro: eToro launched crypto and social trading in the U.S. in 2019. In the second half of 2021, the company plans to launch stock trading in the U.S. market.
In 2020, the European market represented 69% of funded accounts. The Americas region was only 8% of funded accounts, raking third behind Europe and the Asia Pacific region (18%).