Bitpanda scraps London IPO over weak market liquidity

Vienna-based crypto exchange Bitpanda has confirmed it will not pursue a Bitpanda London IPO, citing weak liquidity on the London Stock Exchange (LSE).

The firm, co-founded by Eric Demuth, is now considering possible listings in Frankfurt or New York, though no timeline has been set. Demuth said the decision underscores the challenges facing the UK IPO market and reflects a broader trend of fintech and crypto companies seeking more liquid exchanges abroad.

London Market Faces IPO Drought

Britain’s capital markets are enduring their sharpest IPO slump in decades. According to the Financial Times, funds raised through London listings fell to a 30-year low in the first half of this year, raising doubts about London’s competitiveness. This decline is one of the main reasons the Bitpanda London IPO was abandoned.

“Currently, liquidity-wise, the LSE is not doing too well,” Demuth told the FT. “I hope that it gets better, but over the next few years, I think the LSE is struggling a bit.”

Analysts at the Official Monetary and Financial Institutions Forum (OMFIF) added that the UK had squandered its early lead in distributed ledger finance, further reducing London’s appeal to crypto investors and contributing to the failure of the Bitpanda London IPO.

Bitpanda Considers Alternative Listings

Instead of a Bitpanda London IPO, the company is actively reviewing other options. “Bitpanda is looking at Frankfurt or New York for its next public listing, bypassing London,” Demuth confirmed.

Several high-profile firms, including UK fintech Wise, are also relocating their primary listings abroad to attract deeper pools of investors. “The trend among innovative financial firms is clear: access to more liquid and broader markets is paramount,” Demuth said. This industry-wide migration highlights why the Bitpanda London IPO was no longer a viable option.

US Emerges as Crypto IPO Hub

The decision to cancel the Bitpanda London IPO comes as crypto exchanges increasingly turn toward the US. This month, Gemini Space Station, founded by Cameron and Tyler Winklevoss, filed for a Nasdaq listing under the ticker GEMI. Other crypto companies including blockchain lender Figure, BitGo, and the Thiel-backed Bullish have all pursued US listings.

“Investors are increasingly looking toward US exchanges for crypto offerings, where liquidity and market depth provide more predictable returns,” Cointelegraph analysts said, noting that the same factors pushed Bitpanda away from London. With the Bitpanda London IPO off the table, the US is emerging as the most attractive alternative.

Bitpanda’s UK Expansion

Despite scrapping the Bitpanda London IPO, the company continues to expand in Britain. Its UK launch allows users to trade over 600 digital assets, and the firm recently announced a sponsorship deal with Arsenal Football Club.

These moves suggest that while the Bitpanda London IPO may have been abandoned, the company’s long-term commitment to the UK crypto market remains strong.