While London’s storied financial district has weathered centuries of economic upheaval—from the South Sea Bubble to the 2008 crisis—it appears less equipped to handle the contemporary malady of chronic illiquidity that has befallen its stock exchange.
Vienna-based cryptocurrency platform Bitpanda has become the latest casualty of this institutional sclerosis, abandoning plans for a London IPO in favor of Frankfurt and New York‘s considerably more vibrant markets.
Vienna’s Bitpanda ditches London’s moribund IPO market for Frankfurt and New York’s superior liquidity and regulatory frameworks.
The numbers tell a rather stark story: the UK IPO market raised a paltry $215-248 million in the first half of 2025, a precipitous decline from 2021’s $11.88 billion peak—arguably one of the most dramatic collapses in recent capital market history.
When your IPO market hits a thirty-year low, one might reasonably question whether the exchange has become more museum piece than marketplace.
Bitpanda’s decision reflects broader market realities that extend beyond mere preference. The London Stock Exchange’s insufficient liquidity creates a self-reinforcing cycle: low trading volumes discourage new listings, which further diminishes market activity and investor confidence.
Other firms, including Wise, have similarly migrated their listings elsewhere, suggesting this exodus represents more than isolated dissatisfaction.
Frankfurt and New York present compelling alternatives, offering deeper liquidity pools and clearer regulatory frameworks. US markets have demonstrated particular receptiveness to crypto firms, with Circle raising $1.05 billion and Bullish completing successful debuts.
The regulatory clarity in these jurisdictions provides vital confidence for both issuers and investors—a stark contrast to the UK’s current uncertainty.
For Bitpanda, the shift makes strategic sense beyond market conditions. The company derives significant revenue from continental Europe, making Frankfurt a natural fit, while New York offers access to crypto-friendly institutional capital backed by supportive government policies.
The firm has prudently expanded its compliance infrastructure to meet stringent US and EU regulatory standards, demonstrating serious preparation for public market scrutiny.
This migration toward traditional markets occurs as decentralized finance continues eliminating intermediaries through blockchain-based smart contracts, offering users direct access to lending, borrowing, and trading without conventional institutional approval.
The broader implications suggest London’s capital market challenges may persist absent structural reforms addressing liquidity concerns and regulatory clarity.
Until then, ambitious companies like Bitpanda will likely continue seeking more accommodating venues for their public market debuts.
