Bitpanda skips London listing due to low liquidity, eyes Frankfurt and New York for IPO amid shifting crypto market trends.
Bitpanda, a leading European crypto exchange, has decided against listing on the London Stock Exchange. The Austria-based company, one of Europe’s largest crypto platforms, is exploring options for a public listing. However, London is no longer a contender. This is primarily due to lack of liquidity or rather liquidity on the London Stock Exchange.
Bitpanda Plans IPO in Frankfurt or New York
One of the major problems that the London Stock Exchange has encountered is the difficulty in attracting new listings. Trading volumes have also reduced drastically Bitpanda co-founder, Eric Demuth, talked to the Financial Times about the rationale behind the move. London is not on the menu, he said. He indicated that the UK IPO market is at its lowest point in 30 years. This is a significant issue to a company like Bitpanda that requires very robust market activity and investor interest.
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Bitpanda is looking at instead to other markets. In particular, the company is considering Frankfurt and New York. These destinations are more liquid and have access to a greater number of investors. As an example, the New York Stock Exchange and Nasdaq have emerged as the preferred stock exchange markets to list crypto businesses. Back in the first half of the year, another crypto company, Circle, raised 1.05 billion dollars in a listing on the NYSE. This trend shows the attractiveness of the U.S. markets to crypto businesses.
In addition, Frankfurt is becoming a powerful European alternative. Its stock exchange offers a strong trading volume and an ever-increasing interest in digital assets. This move by Bitpanda to venture into these markets is a strategic plan to be in a position that would boost its growth objectives. The company has been in business for close to a decade and enjoys the support of high-profile investors such as billionaire Peter Thiel.
London’s IPO Struggles Force Crypto Firms to Look Elsewhere
London’s declining appeal is part of a larger trend. Several firms are shunning the UK because of its ailing initial public offering (IPO) market. As an example, companies are increasingly preferring European or U.S.-based exchanges in order to tap into deeper capital bases. Such a change is especially valuable to crypto businesses such as Bitpanda that work in a rapidly evolving field. They need to have sufficient liquidity and clear regulations to prosper.
Moreover, the move by Bitpanda shows that the UK has financial market problems to solve. A number of companies have delisted from the London Stock Exchange in recent years. As an example, Ryanair Holdings delisted in 2021, saying trading volumes were low and costs were excessive. This is conspiring against London competing with other financial centers in the world.
Finally, the decision by Bitpanda to skip London highlights the significance of liquidity to crypto companies. By targeting Frankfurt or New York, the firm will exploit more vibrant markets that have more investors. The strategy at Bitpanda comes amid a broader shift to exchanges that can offer crypto companies more growth opportunities as they look ahead to a possible public offering. Its impressive performance and investor backing make Bitpanda an organization that can make a considerable impact on the global market.
