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Bitpanda has ruled out a London IPO due to weak liquidity on the London Stock Exchange, instead eyeing potential listings in Frankfurt or New York.
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The move highlights London’s ongoing IPO struggles, as crypto firms increasingly turn to U.S. markets like Nasdaq and NYSE for deeper capital access.
Crypto exchange Bitpanda has ruled out pursuing a public listing in London, citing weak liquidity on the London Stock Exchange (LSE) as a decisive factor in its decision. The Vienna-based company, co-founded by Eric Demuth, is instead considering alternative venues such as Frankfurt or New York, though no timeline has been set.
LSE Liquidity Concerns
In an interview with the Financial Times, Demuth explained that London’s stock market is not currently attractive for a company like Bitpanda.
Currently, liquidity-wise, the LSE is not doing too well, he said. I hope that it gets better, but over the next few years, I think the LSE is struggling a bit.
The remarks reflect a growing trend of companies, especially high-growth fintechs, seeking listings outside of the UK. British fintech Wise is among several firms that have either shifted or are exploring the relocation of their primary listings abroad in search of deeper capital markets and stronger investor bases.
London’s IPO Market Struggles
Bitpanda’s decision highlights the challenges facing London as a listing hub. The UK’s IPO market is in the midst of one of its steepest downturns in decades. According to data cited by the Financial Times, capital raised from London listings in the first half of this year slumped to a 30-year low, raising questions about the city’s ability to compete with New York, Frankfurt, and other global financial centers.
This comes amid broader criticism of the UK’s economic and regulatory environment. In June, a report by the Official Monetary and Financial Institutions Forum (OMFIF) argued that the UK had squandered its early-mover advantage in distributed ledger technology and crypto finance.
Meanwhile, sentiment around the UK’s economy has been fragile, highlighted by a satirical video from Coinbase last month mocking Britain’s financial struggles.
US Listings Attract Crypto Firms
Bitpanda’s pivot away from London mirrors a wider trend among crypto companies favoring the United States as a more favorable market for IPOs. Earlier this month, Gemini Space Station, the exchange founded by Cameron and Tyler Winklevoss, filed with the SEC to list its Class A shares on the Nasdaq under the ticker GEMI. Other firms, including Figure, BitGo, and Bullish, have also pursued or secured US listings in recent months.
Bitpanda’s Expansion Efforts
Despite rejecting London as a listing destination, Bitpanda is actively growing its UK presence. The exchange recently launched trading access to over 600 digital assets for UK users and announced a high-profile sponsorship deal with Arsenal Football Club, signaling confidence in its consumer-facing strategy even as it avoids the LSE.
By turning away from London, Bitpanda joins a growing list of companies questioning the city’s viability as a global IPO hub. With liquidity challenges and regulatory headwinds weighing heavily, crypto firms appear to be looking elsewhere—particularly the US—when it comes to raising capital and scaling their businesses.
