Bitpanda, a cryptocurrency exchange based in Vienna, has said it will not list on the London Stock Exchange (LSE) because it doesn’t have enough liquidity. Instead, the company is thinking about Frankfurt or New York for its future IPO plans. This is part of a trend of fintech and crypto companies leaving the UK’s failing public markets.
The London IPO market is going down fast.
Eric Demuth, co-founder of Bitpanda, told the Financial Times that “weak trading volumes and sluggish investor interest” on the LSE “are not doing too well,” which makes London a bad place to raise money. This fits with what has been happening lately. The UK IPO market is going through its worst drought in 30 years, and the total amount of money raised in listings has dropped to historic lows.
Demuth said that big companies like British fintech Wise have already moved or are thinking about moving their main listings to other countries to make it easier for investors to find them. The UK has also been criticized for how it regulates cryptocurrencies. Analysts from the Official Monetary and Financial Institutions Forum (OMFIF) say that the country lost its early advantage in digital assets and distributed ledger technology.
Crypto Companies Like US Listings
Bitpanda’s change in strategy is part of a larger trend among crypto companies that want to do business in the US capital markets. In the last few months, Gemini Space Station, Figure Technology, BitGo, and Bullish have all asked to be listed on the Nasdaq or NYSE. Bitpanda’s move shows that quality exchanges may start to skip London in favor of more dynamic financial hubs as global investors are eager to invest in the US and Germany.
Bitpanda has grown its presence in the UK even though it didn’t list in London. It recently launched with over 600 tradable assets and signed a sponsorship deal with Arsenal Football Club. But the company still won’t say when it plans to go public.
Bitpanda’s choice not to go public in London shows that the UK’s public markets are having more and more trouble with liquidity. Frankfurt and New York are now the best places for fast-growing crypto companies to list. As demand in the sector grows, the biggest exchanges will keep looking for global platforms that are good for investors and use the least amount of capital.
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