London's Struggles Push Bitpanda to Seek Global Alternatives for IPO

Bitpanda, a leading European cryptocurrency exchange, has ruled out a London IPO due to concerns over liquidity in the UK's financial markets. Co-founder Eric Demuth confirmed the decision to the Financial Times, stating that while the company is still evaluating a public listing, it will not occur in London. The London Stock Exchange (LSE) has experienced a significant decline in liquidity, prompting several companies, including fintech firm Wise, to consider or relocate their primary listings abroad [1]. Demuth emphasized that the LSE is "struggling a bit" and may take years to recover [2].

The UK’s IPO market has hit a 30-year low, with fundraising in the first half of 2025 plummeting to between £160m and £182.8m, a stark contrast to the £8.8b peak recorded in 2021 [2]. This decline has raised concerns about London’s ability to retain its status as a global financial hub. Analysts from the Official Monetary and Financial Institutions Forum have pointed out that the UK has failed to capitalize on its early-mover advantage in distributed ledger technology [1]. The weak IPO environment has also drawn criticism, with companies such as Coinbase using satire to highlight the UK’s economic challenges [1].

Bitpanda is now considering alternative markets for its IPO, with Frankfurt and New York as potential venues. The firm has yet to set a timeline for a public offering, but Demuth indicated that it is prioritizing markets with stronger investor bases and deeper liquidity. This decision aligns with a broader trend among crypto companies, many of which are opting for US listings. Recent examples include Gemini, Figure Technology, BitGo, and Bullish, all of which have filed with the U.S. Securities and Exchange Commission for public offerings [1].

The U.S. capital markets have become increasingly attractive to crypto firms, supported by more favorable regulatory frameworks and growing institutional interest. The New York Stock Exchange and Nasdaq have emerged as key players in this space, offering a more accommodating environment for high-growth technology companies. Bitpanda’s recent expansion into the UK and its sponsorship deal with Arsenal Football Club highlight its ongoing strategy to expand its footprint in the region despite its decision to exclude London from its IPO plans [1].

The company’s choice reflects a strategic move to align with jurisdictions that offer regulatory clarity and strong liquidity. As the crypto industry continues to mature, the regulatory and market environment in the U.S. and continental Europe has become a key factor in where firms choose to list. London’s current challenges, including thin trading volumes and reduced investor appetite, have made it a less attractive destination for capital-raising activities [2].

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)