tl;dr
Crypto exchange Bitpanda has decided not to pursue a public listing on the London Stock Exchange due to concerns over weak liquidity. Instead, the Vienna-based firm is considering listings in Frankfurt or New York, with no set timeline. The LSE is facing liquidity challenges that have prompted other...
Crypto exchange Bitpanda has decided against pursuing a public listing on the London Stock Exchange (LSE), citing concerns over weak liquidity. Eric Demuth, Bitpanda's co-founder, revealed that although the Vienna-based firm considered going public, London will not be its choice. Instead, Bitpanda is evaluating options in Frankfurt or New York, though no specific timeline has been announced. Demuth highlighted that the LSE is currently struggling with liquidity issues, impacting its attractiveness to companies and investors alike. He pointed to other firms, such as British fintech Wise, which have already moved or are planning to move their primary listings away from London to appeal to broader investor pools.
The hesitation around London’s public markets coincides with a broader downturn in the UK IPO scene. Data reveals the amount raised from London listings in the first half of the year hit a 30-year low, signaling a sharp decline in market activity and raising doubts about the UK’s competitiveness as a financial hub. This sluggish IPO environment is compounded by criticism of the UK’s cryptocurrency regulatory stance. Analysts at the Official Monetary and Financial Institutions Forum (OMFIF) lamented that the UK squandered its early lead in distributed ledger technology finance. Adding to the critique, Coinbase released a satirical video depicting a grim economic reality in the UK, contrasting upbeat lyrics with visuals of poverty, inflation, and decaying infrastructure.
In contrast to London’s pullback, crypto companies are increasingly turning to the US markets for capital raising opportunities. Gemini Space Station, founded by the Winklevoss twins, filed to list on Nasdaq with the ticker GEMI, joining a growing list of crypto firms targeting US exchanges. Other recent filings include blockchain lender Figure, custody provider BitGo, and Bullish, a Thiel-backed exchange that debuted on the NYSE. Meanwhile, Bitpanda itself has expanded its footprint in the UK by launching a platform that supports trading over 600 digital assets and securing a sponsorship deal with Arsenal Football Club.