Feb 17 (Reuters) – Stock and crypto trading platform eToro beat estimates for fourth-quarter profit on Tuesday on strength across the asset classes it offers.

Shares of eToro rose about 8.9% before the bell.

U.S. equity markets rose during the quarter as interest-rate cuts supported investor confidence, although volatility in crypto markets prompted some market participants to be cautious. Bitcoin saw its biggest monthly drop since mid-2021 in November.

Meanwhile, heavy concentration of investments in select AI-linked stocks have led to soaring valuations, raising concerns of a bubble in the market.

The Tel Aviv-based firm’s assets under administration grew by 11% year-on-year to $18.5 billion.

“Our fourth quarter results reflect the strength and resilience of our multi-asset business model,” Chief Financial Officer Meron Shani said in a statement.

A new wave of fintech firms has emerged in recent years, challenging established Wall Street institutions by attracting younger investors with cheaper trading, intuitive apps and easier access to a wider range of investment options.

However, net contribution, which deducts the cost of revenue from crypto assets and margin interest expense, fell 10% to $227 million.

The company posted adjusted profit of 71 cents per share for the three months ended December 31, beating the average of analysts’ estimates of 63 cents per share, according to data compiled by LSEG.

(Reporting by Prakhar Srivastava in Bengaluru; Editing by Leroy Leo)