Crypto exchange Bitpanda has decided against pursuing an IPO in London, citing weak liquidity on the London Stock Exchange. The company is considering listings in Frankfurt or New York.
Liquidity Issues on the London Stock Exchange
According to Bitpanda co-founder Eric Demuth, the London Stock Exchange (LSE) is not currently an attractive venue for an IPO for a company like Bitpanda. Demuth noted that liquidity on the market is currently performing poorly and expressed hope for improvement, though he believes the LSE will struggle in the coming years.
Challenges for London’s IPO Market
Bitpanda's decision highlights the challenges facing London as a listing hub. According to data cited by the *Financial Times*, capital raised from London listings in the first half of the year dropped to a 30-year low, raising questions about London's ability to compete with other financial centers such as New York and Frankfurt.
Bitpanda's Expansion Efforts in the UK
Despite ruling out London for its IPO, Bitpanda is actively expanding its presence in the UK. The exchange recently launched trading access to over 600 digital assets for UK users and announced a sponsorship deal with Arsenal Football Club, signaling confidence in its consumer-facing strategy even as it avoids the LSE.
Bitpanda's decision to steer away from London reflects a growing trend among crypto firms seeking more favorable conditions for IPOs in U.S. markets. With liquidity challenges and regulatory barriers in the UK, the viability of London as a global IPO hub is under scrutiny.
