The Austrian cryptocurrency exchange Bitpanda does not plan to list on the London Stock Exchange, citing insufficient liquidity in the British market. This decision was explained by co-founder Eric Demuth, who pointed to capital outflows from London and the challenging situation for IPOs in the United Kingdom.
This is reported by Business • Media
Reasons for Abandoning the British Market
Bitpanda emphasizes that there has been a mass exodus of companies from the London Stock Exchange recently. Eric Demuth cited the example of the British fintech company Wise, which moved its main listing to New York precisely because of low liquidity in London. Demuth also noted that the coming years will remain challenging for the London Stock Exchange, and Bitpanda has only recently begun operations in the United Kingdom. The majority of the company’s profits currently come from continental Europe.
Alternatives and Prospects
Bitpanda is currently considering New York and Frankfurt as alternative venues for a public offering of shares. However, there is no final decision yet regarding the timing of the IPO or the choice of exchange. Among the additional factors influencing the decision to abandon the British market is the fact that the company has only just started to develop its operations in the United Kingdom.
“The United Kingdom is experiencing a prolonged IPO ‘drought’: the amount raised from initial offerings in the first half of this year has fallen to a 30-year low. Concerns are growing regarding London’s status as a global financial center. Politicians and regulators are trying to revive the capital market through a series of reforms in recent years,” stated the Financial Times.
It was previously reported that Bitpanda was considering the possibility of an IPO or selling the business in 2025, but no final decisions have been made regarding this yet.