Bitpanda, a Vienna cryptocurrency exchange, has put on hold initial public offering (IPO) plans in London due to diminishing liquidity conditions on the London Stock Exchange (LSE).
Co-founder Eric Demuth informed the Financial Times that while the company remains keen to explore public listing opportunities, “it will not be in London.”
Instead, Bitpanda is eyeing Frankfurt or New York as possible locations, although no definitive timeline has been established.
Demuth indicated that London’s capital markets are having trouble drawing meaningful investor engagement, so they are less attractive for growth-stage tech and crypto companies.
Fears Grow Over London’s Underperforming IPO Market
Bitpanda’s rejection of London occurs while the UK IPO market is at its weakest in 30 years.
According to market data, the total amount raised through London listings during the first half of the year was the lowest in decades, raising concerns about the competitiveness of the city compared to other financial hubs.
Demuth also added that firms such as Wise have already moved, or are moving, to lead listings abroad in search of greater liquidity and improved investor demand.
Experts forecast that if structural issues are not addressed, London will lose its position in the international capital markets.
UK Slammed Over Crypto Policy, Market Competitiveness
The UK’s problems extend beyond liquidity, with its overall policy on cryptocurrency in doubt.
The Official Monetary and Financial Institutions Forum (OMFIF), a highly regarded think tank, said in June that the UK squandered its early lead in distributed ledger finance.
The criticism is part of a narrative that Britain is losing its competitiveness as both a financial and tech hub.
In an eye-opening moment of culture, Coinbase released a humorous video last month taunting the UK economy, with references to inflation, poverty, and run-down infrastructure, adding to feelings of skepticism surrounding the British market.
Crypto Companies Head to the US for Listings
The move by Bitpanda comes in a rising trend of crypto firms choosing the US capital markets over London first.
Last week, the Winklevoss-owned Gemini exchange had also submitted to list Class A common stock on Nasdaq under the ticker symbol GEMI.
Some other high-profile players, such as blockchain lender Figure, custody company BitGo, and Peter Thiel-funded Bullish, which listed on the New York Stock Exchange (NYSE), all chose the US for their IPOs.
Notably, on June 5th, Circle NYSE: CRCL, the second-largest stablecoin issuer in the world, opened on the NYSE. The stock price witnessed an incredible rise and kicked off on opening day at $69, up 122.5% from its $31 IPO price, UnoCrypto reported.
These decisions serve to underscore how Wall Street continues to be the default destination for global capital raising, drawing in crypto and fintech companies seeking scale and liquidity.
Also Read: Kraken Targets $15 Billion Valuation For 2026 IPO After $1.5 Billion Revenue Year
Bitpanda’s Regulatory and Leadership Developments
In addition to its IPO intentions, Bitpanda has also made advancements on the regulation and leadership fronts.
On January 27, UnoCrypto reported that the exchange received a MiCA license from Germany’s BaFin, among the first fully regulated crypto service providers in the EU.
The license allows Bitpanda to expand its services, including trading, custody, and portfolio management, to retail and institutional customers in Europe.
More recently, on 1 August, we also reported that their co-founder, Paul Klanschek, stepped down as CEO, becoming an advisor.
Deputy CEO Lukas Enzersdorfer-Konrad has taken the reins since, guiding the firm into its next phase of growth as it targets a public listing in more sympathetic jurisdictions.
Also Read: Grayscale Files Confidential S-1 For U.S. IPO Amid Rising Number Of Crypto Companies Going Public