Online trading platform eToro has agreed to acquire self-custodial crypto wallet provider Zengo in a deal worth about $70 million, mostly in cash, as it accelerates its move deeper into onchain finance.
The acquisition, announced Wednesday at Paris Blockchain Week, is designed to bolster eToro’s infrastructure for tokenized assets, prediction markets, perpetuals, and yield-generating products. The company aims to serve a more crypto-native user base and lessen its reliance on traditional brokerage services.
Crypto now dominates eToro’s business
In its latest financial report, eToro posted total income of $13.8 billion for 2025, with $12.98 billion generated from crypto-related operations. Digital assets now account for the vast majority of the platform’s revenue, underscoring the strategic importance of the sector for the firm.
Chief executive Yoni Assia said the Zengo deal fits squarely into that shift, positioning eToro to offer more advanced onchain services and expand beyond simple trading of cryptocurrencies.
Strategic move into self-custody and onchain activity
Buying Zengo marks a clear pivot toward self-custody, reflecting growing demand from users who want direct control of their assets and direct access to onchain products.
Zengo’s technology uses multi-party computation (MPC) to provide a keyless security model, aiming to reduce the risk and complexity associated with traditional private key management. Integrating this infrastructure is expected to make it easier for eToro users to move from basic buying and selling into more complex decentralized activities.
These include:
- interacting with tokenized assets on blockchains
- participating in decentralized prediction markets
- accessing onchain yield and derivative products such as perpetuals
The focus on self-custody mirrors a broader industry move away from reliance on centralized intermediaries, a trend accelerated by high-profile platform failures in recent years.
Assia’s bitcoin outlook: slowdown, then accumulation
Speaking in Paris, Assia said the current slowdown in digital asset markets could last for another quarter before bitcoin enters what he called an accumulation phase. In such a phase, more experienced market participants typically absorb available supply in anticipation of future price gains.
He argued this process could ultimately lift bitcoin above $250,000 per coin, implying a rise of about 3.3 times from current levels and a market capitalization near $5 trillion. At that valuation, bitcoin would be the world’s second-largest asset after gold, up from its current rank around 12th, according to CompaniesMarketCap data.
Assia’s timing aligns with current consolidation, with bitcoin trading just above $73,000 after a volatile first quarter.
Competing forecasts and cycle debate
Assia’s long-term target echoes other bullish projections, including those from commentators such as Arthur Hayes, who has also floated six-figure price scenarios for this cycle.
However, shorter-term expectations remain more cautious. Some analysts see year-end 2026 levels in the $72,000–$82,000 range, highlighting major resistance between $75,000 and $80,000. Recent strength, which saw bitcoin break above $74,000 on April 14, has been driven in part by renewed inflows into spot bitcoin exchange-traded funds.
At the same time, several market participants are questioning how reliable bitcoin’s traditional four-year halving cycle remains, given the growing influence of institutional capital and new trading products.
Galaxy digital flags political and policy risks
Galaxy Digital has warned that the outlook for digital assets could stay uncertain in the near term as markets digest the approaching U.S. midterm elections and shifting monetary policy.
Historically, midterm years have often brought higher volatility and drawdowns in risk assets. Yet the 12 months following those elections have tended to be strong, with bitcoin delivering an average return of roughly 54% in the three most recent post-midterm periods.
This pattern suggests policy signals emerging after November could play a significant role in shaping the next phase of the crypto market.
What to watch next
Market participants are expected to focus on several key areas:
- regulatory and legislative developments around digital assets after the U.S. midterms
- signs in onchain data of sustained accumulation by large bitcoin holders
- institutional fund flows into spot ETFs and other regulated products
- adoption of self-custodial solutions like Zengo within multi-asset platforms such as eToro
The Zengo acquisition positions eToro to capture users who want more direct engagement with onchain finance, just as the broader market debates whether the next phase for bitcoin is a prolonged consolidation or the beginning of another major leg higher.
Interested in secure self-custody and onchain finance? Explore Toobit’s digital assets guide to understand today’s evolving crypto infrastructure.
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