cointelegraph

Bitpanda Rules Out London IPO, Eyes Frankfurt or New York

Crypto exchange Bitpanda turned away from London’s public markets, citing weak liquidity on the London Stock Exchange (LSE) as a key factor in its decision.

Eric Demuth, co-founder of the Vienna-based crypto exchange, told the Financial Times that while Bitpanda was actively evaluating a public listing, “it will not be in London.” Instead, the firm is weighing potential listings in Frankfurt or New York, though no timeline has been set.

“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.”

Demuth noted that several companies, including British fintech Wise, have already shifted or are in the process of moving their primary listings abroad to attract more investors.

Cointelegraph reached out to Bitpanda for comment, but had not received a response before publication.

Related: Crypto Biz: IPO fever, Ether wars and stablecoin showdowns

London IPO market hits 30-year low

The UK is facing one of its steepest IPO droughts in decades. According to market data cited by the FT, the amount raised from London listings in the first half of the year dropped to a 30-year low, sparking concerns over its ability to compete with other global financial centers.

The UK has also been under fire for its crypto policy. In June, analysts at the Official Monetary and Financial Institutions Forum (OMFIF), an independent think tank, argued that the UK had wasted its early-mover advantage in distributed ledger finance.

Last month, Coinbase released a satirical video mocking the state of the UK economy, contrasting upbeat lyrics about “everything being fine” with bleak images of poverty, inflation, debt and crumbling infrastructure.

Bitpanda Rules Out London IPO, Eyes Frankfurt or New York
Coinbase releases video taking aim at the UK. Source: Coinbase

Related: Blockchain-focused Figure Technology joins crypto IPO wave with SEC filing

Crypto companies file for US listings

Bitpanda’s rejection of London comes as crypto firms increasingly look to the US for capital market activity. Earlier this month, Gemini Space Station, the crypto exchange founded by Cameron and Tyler Winklevoss, filed with the SEC to list its Class A common stock on the Nasdaq Global Select Market under the ticker GEMI.

Other crypto firms that have recently filed for US listings include blockchain lender Figure, BitGo and Bullish, another Thiel-backed exchange that listed on the NYSE this month.