Bitpanda Ditches London Listing Over Liquidity Crash, Targets Frankfurt and New York

Bitpanda, the Vienna-based cryptocurrency exchange backed by billionaire investor Peter Thiel, has decisively turned its back on a London Stock Exchange (LSE) listing, slamming the UK market for its abysmal liquidity and faltering IPO scene. CEO Eric Demuth has made it clear that the company is eyeing Frankfurt and New York as prime contenders for a future public offering, where deeper investor demand and healthier market conditions beckon. This move isn’t just a business decision—it’s a stark wake-up call for London as it grapples with a historic decline in financial relevance.

• Bitpanda rejects London listing citing poor LSE liquidity.
• Frankfurt and New York emerge as top choices for future IPO.
• UK IPO market slumps to 30-year low in 2025, raising only £160m-£182.8m in H1.

London’s Fall from Grace: A Market in Freefall

The numbers don’t lie—London’s capital markets are in a tailspin. The UK IPO market has hit its lowest point in three decades, with a pitiful £160m to £182.8m (roughly $216m to $247.8m) raised in the first half of 2025, according to recent reports. Compare that to a peak of £8.8b ($11.88b) in 2021, and it’s evident that the LSE is bleeding out. Thin trading volumes and a lack of investor appetite have turned what was once a global financial powerhouse into a risky gamble for high-growth firms like Bitpanda. Eric Demuth didn’t mince words, pointing out that the LSE is struggling with weak liquidity, a sentiment shared by a growing list of companies jumping ship.

For those unfamiliar, liquidity refers to how easily shares can be bought or sold on an exchange without causing wild price swings. A market with low liquidity—London’s current predicament—means fewer buyers and sellers are active, creating a minefield for companies going public. When a firm like Bitpanda considers an Initial Public Offering (IPO), where it first sells shares to the public, it needs a market that can handle high trading volume to ensure stability and fair valuation. London, right now, just ain’t it.

The decline isn’t just about numbers—it’s systemic. Over $100 billion in listed companies have migrated to New York in recent years, with even British heavyweights like fintech giant Wise and pharmaceutical titan AstraZeneca either shifting or mulling moves across the Atlantic. Brexit fallout, uninspiring tax policies, and a general erosion of investor confidence have left London scrambling to retain its status as a fintech hub. Bitpanda’s snub isn’t personal; it’s pragmatic. With most of its revenue still rooted in continental Europe despite a recent UK launch, the exchange has little incentive to roll the dice on a sinking ship.

Frankfurt and New York: Where the Real Action Is

So where does a crypto heavyweight like Bitpanda turn when London’s out of the picture? Two markets stand out for their promise of better returns: Frankfurt and New York. Frankfurt, home to the Deutsche Börse, offers a compelling European alternative, aligning with Bitpanda’s strong regional presence. Germany has cultivated a reputation for crypto-friendly policies, with a regulatory framework that’s increasingly accommodating under the EU’s Markets in Crypto-Assets (MiCA) rules—a set of guidelines aimed at standardizing crypto oversight across the bloc. While not as globally dominant as New York, Frankfurt’s recent track record with tech IPOs and its deeper market depth compared to London make it a serious contender.

New York, on the other hand, is the golden ticket for crypto firms right now. The New York Stock Exchange (NYSE) and Nasdaq have become magnets for blockchain innovators, fueled by robust investor enthusiasm and a surprising regulatory thaw under the Trump administration. Policies easing restrictions on digital assets, coupled with a flood of institutional capital, have turned the US into a haven for crypto listings. Look no further than Circle, the issuer of USD Coin stablecoin, which raised a massive $1.05b on the NYSE at an $8b valuation in 2025. Other Thiel-backed ventures like Bullish, alongside Gemini and BitGo, have also flocked to American markets, capitalizing on a perfect storm of liquidity and opportunity in the US.

But let’s not get too starry-eyed. While the US offers undeniable advantages, it’s not without risks. Regulatory winds can shift overnight—today’s crypto-friendly administration could be tomorrow’s crackdown central. Frankfurt, while stable, lacks the global clout of New York, potentially limiting Bitpanda’s exposure to worldwide investors. Still, both options blow London out of the water in terms of raw market potential, and Bitpanda’s clearly betting on a venue that can match its ambition.

Bitpanda’s Roots: A Poker Player’s Calculated Bet

Bitpanda’s decision isn’t just about numbers—it’s steeped in a strategic mindset that traces back to its origins. Founded in Vienna, Austria, by Eric Demuth, Paul Klanschek, and Christian Trummer, the exchange emerged from a poker-playing community with a knack for data-driven, risk-reward calculations. There’s a historical quirk here: poker and crypto have long shared a rebellious, analytical spirit, with even Bitcoin’s enigmatic creator, Satoshi Nakamoto, reportedly embedding poker references in the original code. Bitpanda’s founders brought that same grit to building a platform that’s been profitable for five years straight, reaching a $4.1b valuation after a $170m raise in 2021 led by Thiel’s Valar Ventures, a story of timing and strategic plays.

Klanschek, in particular, has been outspoken about his disdain for shaky business models, once declaring his hatred for companies reliant on endless funding rounds to stay afloat. That discipline shines through in Bitpanda’s aversion to a listing in a market that can’t deliver. Vienna itself played a role in this rise, as a burgeoning startup hub hosting half of Austria’s startups with a 12% annual growth rate in tech firms. Early on, Austria’s relatively lax crypto regulations gave Bitpanda breathing room to scale before stricter oversight kicked in—a stark contrast to competitors who prioritized speed over sustainability and later imploded.

Today, Bitpanda offers a wide range of services, from Bitcoin and altcoin trading to staking and savings products, catering to a diverse user base across Europe. While not a Bitcoin-only platform, its focus on financial independence echoes the core ethos of BTC—ditching centralized systems that don’t serve the user. Snubbing London feels like a natural extension of that philosophy: why trust a faltering traditional hub when better, more dynamic options exist?

Wider Crypto Trends: A Shift Away from Old-Guard Hubs

Bitpanda’s move mirrors a broader migration in the crypto space. Firms are increasingly seeking markets that offer not just liquidity, but also regulatory clarity and institutional backing. The US, for all its past hostility toward digital assets, has flipped the script with recent policy shifts—think streamlined SEC guidelines and public endorsements of blockchain innovation. This has lured a wave of players, from stablecoin giants like Circle to custodians like BitGo, all chasing the promise of deeper trading volumes and bigger investor pools.

Yet there’s a darker side to this trend. Smaller crypto exchanges or projects without Bitpanda’s clout may find themselves squeezed out, unable to access elite markets like the NYSE or even Frankfurt. If the industry consolidates around a handful of major listing venues, could we see a new kind of centralization creep in, ironically undermining the decentralized ethos that birthed Bitcoin? It’s a question worth pondering as giants like Bitpanda, who recently made headlines for rejecting a UK listing, pave the way.

Europe’s MiCA framework might offer some balance, providing a standardized regulatory playbook that could make continental listings more attractive for mid-tier firms. Bitpanda’s potential Frankfurt play could position it as a leader in this evolving space, straddling the line between American opportunity and European stability. Meanwhile, London’s woes signal a deeper rot—failing to adapt, it risks becoming a relic in a world where financial systems are being rewritten by blockchain tech.

What This Means for the Future of Crypto Listings

Let’s cut the fluff: London’s getting sidelined, and Bitpanda’s rejection is a glaring symptom of a financial hub that’s lost its edge. This isn’t just about one exchange’s IPO—it’s about the accelerating shift toward markets that can keep up with crypto’s disruptive pace. Could snubbing old-guard centers like London push us faster toward a future where crypto firms build their own decentralized listing platforms, untethered from traditional exchanges altogether? That’s the kind of effective accelerationism we can get behind—a world where innovation doesn’t wait for permission.

For now, Bitpanda’s playing a high-stakes game with the precision of a poker pro, and London’s not even in the deck. Whether Frankfurt or New York wins out, one thing’s clear: the crypto revolution isn’t slowing down for outdated systems. The question is whether London can claw back relevance before it’s too late—or if it’s already game over.

Key Takeaways and Questions Answered

• Why did Bitpanda reject a London listing?
  Bitpanda turned away from the London Stock Exchange due to its weak liquidity and lackluster IPO market, with CEO Eric Demuth highlighting better conditions in Frankfurt and New York, alongside the company’s revenue focus on continental Europe.
• What’s the current state of the UK IPO market?
  It’s at a shocking 30-year low in 2025, with only £160m to £182.8m raised in the first half, compared to a high of £8.8b in 2021, reflecting a severe drop in investor activity and market depth.
• Why are crypto firms gravitating to US markets?
  The NYSE and Nasdaq offer superior liquidity, strong investor demand, and friendlier regulatory policies under recent US administration shifts, as seen with successful listings like Circle’s $1.05b raise in 2025.
• How does Bitpanda’s decision reflect broader crypto trends?
  It aligns with a growing exodus of crypto and tech firms to markets with better liquidity and regulatory clarity, evident in the US listings of Bullish, Gemini, and BitGo, signaling a shift away from traditional hubs like London.
• What risks come with listing in New York or Frankfurt?
  New York carries the risk of sudden regulatory reversals despite current friendliness, while Frankfurt, though stable, may lack the global investor reach of US markets, potentially capping exposure.
• Could London’s decline hurt its fintech reputation?
  Without a doubt—losing high-profile listings like Bitpanda’s risks tarnishing London’s status as a financial leader, ceding ground to competitors like New York unless swift reforms reverse the trend.