Feb 17 (Reuters) - Stock and crypto trading platform eToro beat estimates for fourth-quarter profit on Tuesday as strong capital market ‌activity drove up trading income, sending its shares up 18.4%.

U.S. ‌equities had an upbeat quarter as interest-rate cuts supported investor confidence, although volatility in crypto ​prompted some market participants to be cautious. Bitcoin saw its biggest monthly drop since mid-2021 in November.

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

Net trading income from ⁠equities, commodities and currencies rose 43% to $115.6 million, driven by investor rotation between crypto and traditional asset classes, ⁠with particularly strong performance in commodities.

Crypto-native customers who had mainly traded digital assets were now trading commodities - something the company had not seen before - CEO ​Yoni ​Assia said on a call with ​analysts.

"So I do think there's ‌somewhat of a convergence or a shift from crypto, which now has lower volatility to now basically gold, silver and other commodities that have higher volatility," Assia said.

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.

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

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 analysts' estimates of 63 cents per share, according to ​data compiled by LSEG.

(Reporting by Prakhar Srivastava in Bengaluru; Editing ​by Leroy Leo and Devika Syamnath)