Retail traders are here to stay, says eToro's US CEO
Episode 4 of Season 4 of The Scoop was recorded remotely with The Block’s Frank Chaparro and CEO Lule Demmissie of eToro US.
Listen below, and subscribe to The Scoop on Apple, Spotify, Google Podcasts, Stitcher or wherever you listen to podcasts. Email feedback and revision requests to [email protected].
This episode is brought to you by our sponsors Fireblocks, Kraken & Chainalysis
Fireblocks is an enterprise-grade platform delivering a secure infrastructure for moving, storing, and issuing digital assets. Fireblocks enables exchanges, lending desks, custodians, banks, trading desks, and hedge funds to securely scale digital asset operations through the Fireblocks Network and MPC-based Wallet Infrastructure. Fireblocks serves over 725 financial institutions, has secured the transfer of over $1.5 trillion in digital assets, and has a unique insurance policy that covers assets in storage & transit. For more information, please visit www.fireblocks.com.
About Kraken
Whether you’re an experienced crypto trader or just starting out, Kraken has the tools to help you achieve financial freedom. With 50+ cryptocurrencies to choose from, industry-leading security and a wide variety of features to suit any investing strategy, Kraken puts the power in your hands to buy, sell and trade digital assets. Visit Kraken.com to get started today.
About Chainalysis
Chainalysis is the blockchain data platform. We provide data, software, services, and research to government agencies, exchanges, financial institutions, and insurance and cybersecurity companies in over 60 countries. Our data powers investigation, compliance, and market intelligence software that has been used to solve some of the world’s most high-profile criminal cases and grow consumer access to cryptocurrency safely. Backed by Accel, Addition, Benchmark, Coatue, Paradigm, Ribbit, and other leading firms in venture capital, Chainalysis builds trust in blockchains to promote more financial freedom with less risk. For more information, visit www.chainalysis.com.
At the onset of the pandemic in 2020, the daily lives of virtually everyone around the world radically changed.
Commutes to the office ceased. Concerts and dining outings were canceled.
For some, punting stocks and cryptocurrencies on online brokerages filled the void. That fundamental shift reshaped US equity markets, ushering in an era dominated by Wall Street Bets, meme stocks, and cryptocurrency. Indeed, retail trading has yet to subside even as economies reopen. Monthly net purchases of US equities by individual investors have stabilized at around $20 billion—a surge from the pre-pandemic norm of about $5 billion.
On this episode of The Scoop, eToro's newly-appointed US lead Lule Demmissie explained why she doesn't see retail's newfound presence in the market subsiding anytime soon, and how eToro plans to capitalize on growing its business related to cryptocurrencies and stock trading.
"What you're seeing is the sustainability of that user base staying engaged, waiting for dips, getting in the markets when necessary," said Demmissie, former Ally Invest president and TD Ameritrade managing director.
"Ultimately they're sticking around and they're engaging every time there's volatility," she added.
Demmissie said that the collective mind of the retail crowd could have more insight than institutions previously may have thought.
"I'm originally from Ethiopia, right? So I grew up in the throes of a revolution. So the idea of mob rule is something that is like embedded in my DNA as to be averse to it," said Demmissie.
"There is a self-made mechanism, a self-clearing mechanism that is happening in social, where there is a balance that takes place within the crowd, where the crowd gets smarter and smarter, and the synthesis of it afterwards becomes something that is really interesting to listen to."
In this episode, Demmissie and Chaparro also unpack:
- eToro's roadmap in the US and the importance of social media elements in its strategy
- How the transition of wealth from older generations to newer ones is disrupting the financial services industry
- Why Demmissie believes the metaverse is going to be "unbelievable"
- How skepticism "makes a market"
- The ways digital assets can make the world more equal
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
