Bitpanda Rejects London IPO Due to Liquidity Concerns

Bitpanda, a popular crypto exchange, has decided to stop its plans for a potential listing on the London Stock Exchange (LSE). The exchange has concerns over weak market liquidity and the broader issues of the UK’s public markets. Bitpanda’s co-founder, Eric Demuth, told the Financial Times that while the company was actively exploring IPO options, “it will not be in London.”

Instead, the firm is considering New York or Frankfurt as more positive venues for their endeavors. Although they have not set a timeline for this.

Bitpanda Holds Their London IPO Plans

Eric Demuth was not excited about the London IPO plans. He said, “Currently, liquidity-wise, the LSE is not doing too well. I hope that it gets better, but over the next few years, I think the LSE is struggling a bit.”

Bitpanda’s move underscores the mounting challenges facing the UK as it seeks to attract high-growth technology and digital asset firms to its markets. According to data cited by the Financial Times, capital raised from London IPOs in the first half of the year fell to a 30-year low. The slump has raised concerns about London’s competitiveness compared to financial hubs like New York, Frankfurt, and Amsterdam.

The pressure is evident in recent moves by companies such as Wise, the British fintech, which has considered shifting its primary listing abroad to tap into deeper investor pools. Analysts warn that the continued drain of tech listings could undermine London’s ambitions to establish itself as a global hub for innovation-driven industries.

Adding to the strain is criticism of the UK’s crypto regulatory stance. In June, the Official Monetary and Financial Institutions Forum (OMFIF) argued that Britain had squandered its early advantage in distributed ledger finance through policy indecision. Last month, Coinbase even released a satirical video mocking the UK economy, juxtaposing upbeat lyrics with imagery of inflation, debt, and crumbling infrastructure.

Bitpanda’s decision reflects a broader shift by crypto companies toward US markets. Earlier this month, Gemini, founded by Cameron and Tyler Winklevoss, filed to list shares on Nasdaq under the ticker GEMI. Other recent US filings include blockchain lender Figure, custody provider BitGo, and exchange Bullish, which went public on the NYSE.

Despite ruling out London, Bitpanda is expanding its UK presence. The exchange recently launched trading services for over 600 digital assets in the country and announced a sponsorship deal with Arsenal Football Club, highlighting its intent to grow its brand even as it sidesteps the UK’s capital markets.

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