Vienna-based Bitpanda is eyeing Frankfurt or New York for a future listing, with its co-founder warning that London’s IPO market is too illiquid to attract investors.
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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, 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:
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, its early-mover advantage in finance.
Last month, Coinbase the state of the UK economy, contrasting upbeat lyrics about “everything being fine” with bleak images of poverty, inflation, debt and crumbling infrastructure.
Related:
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, 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 , and Bullish, another Thiel-backed exchange that .
Bitpanda recently , allowing users to trade over 600 digital assets, and announced a sponsorship deal with Arsenal Football Club.
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