Bitpanda, a prominent European cryptocurrency exchange, has decided against pursuing an IPO in London, citing concerns over the liquidity of the UK’s financial markets. Co-founder Eric Demuth confirmed the decision, noting that while the company is still considering a public listing, London is not on the list due to the challenges faced by the London Stock Exchange (LSE). The LSE has seen a sharp drop in liquidity, leading several companies, including fintech firm Wise, to explore or shift their primary listings overseas.
The UK’s IPO market has reached a 30-year low, with fundraising in the first half of 2025 dropping significantly compared to the peak in 2021. This downturn raises questions about London’s ability to maintain its status as a global financial center. Analysts have criticized the UK for not leveraging its early lead in distributed ledger technology, and companies like Coinbase have used satire to comment on the UK’s economic issues.
In response, Bitpanda is exploring other markets for its IPO, with Frankfurt and New York emerging as potential candidates. The company has not set a timeline for the public offering but is focusing on markets with robust investor bases and greater liquidity. This move follows a broader trend among crypto firms opting for US listings, where the regulatory environment and institutional interest are more favorable.
The U.S. capital markets, particularly the New York Stock Exchange and Nasdaq, have become increasingly appealing to crypto companies, offering a supportive environment for high-growth tech firms. Despite excluding London from its IPO plans, Bitpanda continues to expand its presence in the UK, as seen through its recent expansion and sponsorship deal with Arsenal Football Club.
Bitpanda’s decision underscores a strategic shift towards regions offering regulatory clarity and strong liquidity. As the crypto industry evolves, the regulatory and market conditions in the U.S. and continental Europe are increasingly influencing where firms choose to list. London’s current struggles, including low trading volumes and diminished investor interest, have made it less attractive for raising capital.
