Liquidity Crisis Forces Bitpanda to Ditch London for Stronger Markets

Bitpanda, the European cryptocurrency exchange, has ruled out a London IPO due to liquidity concerns at the London Stock Exchange (LSE), according to reports. Eric Demuth, co-founder and CEO of Bitpanda, stated that while the company is considering a public listing, the UK is not an option at this stage. Instead, Bitpanda is evaluating potential listings in either Frankfurt or New York, though no specific timeline has been announced. Demuth cited the LSE’s weak liquidity as a primary factor influencing the decision, noting that several companies have already shifted or are considering relocating their primary listings abroad for better investor access [1].

The UK’s IPO market has indeed struggled in 2025, reaching a 30-year low in fundraising. According to data cited by the Financial Times, only £160 million to £182.8 million was raised in the first half of the year, a stark contrast to the £8.8 billion peak in 2021. This decline has raised concerns over the LSE’s ability to attract high-growth technology firms, particularly those in the fintech and cryptocurrency sectors. Demuth highlighted that British fintech Wise recently voted to shift its primary listing to the US, a move reflective of a broader trend of firms seeking deeper and more active markets [2].

Bitpanda’s decision aligns with a growing trend among crypto firms to pursue listings in the US or continental Europe, where regulatory and market environments are perceived as more favorable. The New York Stock Exchange (NYSE) and Nasdaq have emerged as preferred destinations for crypto companies seeking liquidity and institutional investment. For example, Gemini, the Winklevoss-backed exchange, recently filed for a Nasdaq listing, while Bullish, another Thiel-backed exchange, successfully listed on the NYSE. These moves underscore a shift in capital markets activity toward jurisdictions offering greater investor demand and regulatory clarity [2].

Demuth also emphasized that Bitpanda’s business remains heavily concentrated in continental Europe, despite its recent launch in the UK. The firm has generated the majority of its revenue from the European market and is currently expanding its operations, including a sponsorship deal with Arsenal Football Club. While Bitpanda has made inroads in the UK, the liquidity and investor appetite in continental Europe remain more aligned with the company’s strategic goals [1].

The rejection of the UK as a listing venue reflects broader concerns about the country’s crypto policy framework. Critics argue that the UK has failed to capitalize on its early-mover advantage in distributed ledger technology, with analysts at the Official Monetary and Financial Institutions Forum (OMFIF) noting the country’s declining competitiveness in fintech. Additionally, the UK’s economic conditions have drawn scrutiny, with Coinbase recently releasing a satirical video highlighting the challenges posed by inflation, poverty, and infrastructure decline [1].

Source: [1] Bitpanda Rules Out London IPO Over Liquidity Concerns (https://cointelegraph.com/news/bitpanda-rules-out-london-ipo-liquidity-frankfurt-new-york) [2] Peter Thiel-Backed Bitpanda Rejects UK Listing On Liquidity (https://finance.yahoo.com/news/peter-thiel-backed-bitpanda-rejects-050413945.html) [3] Crypto Exchange Bitpanda Latest to Rule Out UK Listing (https://www.investmentweek.co.uk/news/4518078/crypto-exchange-bitpanda-rule-uk-listing-reports)