Bitpanda Rules Out London Listing Due to Liquidity Concerns

Strategic Insights -

Bitpanda, a crypto exchange backed by billionaire investors, has ruled out listing in London due to concerns over liquidity in share trading. The company is considering a listing, but it will not be in London, according to Eric Demuth, cofounder of Bitpanda. The UK's capital markets are suffering from a prolonged drought in initial public offerings, with the amount raised from listings in the first half of the year at a 30-year low. Bitpanda is weighing its options and is looking at either Frankfurt or New York for a potential listing.

Key Takeaways:

  • Bitpanda, a crypto exchange backed by billionaire investors, has ruled out listing in London due to concerns over liquidity in share trading.
  • The company is considering a listing, but it will not be in London, according to Eric Demuth, cofounder of Bitpanda.
  • The UK's capital markets are suffering from a prolonged drought in initial public offerings, with the amount raised from listings in the first half of the year at a 30-year low.
  • Bitpanda reported revenues of €393mn last year and has been valued at $4.1bn in 2021.
  • The company is trying to revive its listing plans and is considering Frankfurt or New York, with a decision on location or timing yet to be made.
  • Bitpanda's decision is part of a larger trend of companies shunning London's capital markets, with British fintech Wise recently switching its primary listing from London to New York.
  • Crypto companies are flocking to the US, with blockchain-based lender Figure Technology Solutions, Gemini, and BitGo all recently filing to list in New York.

Statistics:

  • The amount raised from listings in the first half of this year is at a 30-year low (£2.8bn) (1)
  • Bitpanda operates in more than 160 countries (2)
  • The company reported revenue of €393mn last year (3)
  • Bitpanda has been valued at $4.1bn in 2021 (3)
  • The UK's capital markets are experiencing a drought in initial public offerings (1)

Sources:

(1) Financial Times - "Bitpanda rules out London listing due to liquidity concerns"

(2) Bitpanda - "About Bitpanda"

(3) Crunchbase - "Bitpanda"