The Vienna-based crypto exchange abandoned its plans to list in London, citing liquidity woes and market conditions, as firms increasingly prefer US and Frankfurt venues with clearer regulation and deeper liquidity pools.
The cryptocurrency sector, which once flourished amid speculative enthusiasm, is now confronted with the stark realities of liquidity challenges and regulatory uncertainty that are reshaping the viability of crypto exchanges aiming to go public. A prominent example is Bitpanda, the Vienna-based crypto exchange backed by billionaire investors including Peter Thiel and Alan Howard. Bitpanda recently decided to forego an initial public offering (IPO) on the London Stock Exchange (LSE), citing poor liquidity and an unfavorable market environment as decisive factors in its strategic pivot toward potential listings in Frankfurt or New York.
Liquidity—the ease with which assets can be bought or sold without causing significant price changes—has emerged as the “silent killer” for many crypto firms seeking public capital. Bitpanda’s CEO, Eric Demuth, explicitly pointed to a lack of “depth of buyers and sellers” on the LSE as a critical barrier to executing a successful IPO. This issue is symptomatic of a broader structural decline in London’s capital markets, which have seen fundraising plunge to a 30-year low in the first half of 2025. With IPO proceeds on the LSE dropping to between £160 million and £182.8 million, compared to a peak of £8.8 billion in 2021, the exchange struggles to attract both institutional and retail interest. For crypto firms, which typically exhibit higher volatility and regulatory complexities, the liquidity deficit represents an even greater risk of underperformance post-listing.
In stark contrast, markets like New York and Frankfurt have become preferred venues for crypto exchanges seeking robust investor demand and deeper liquidity pools. The New York Stock Exchange (NYSE) and Nasdaq, benefitting from a regulatory environment that has been historically more supportive and clearer in its frameworks, have seen a wave of successful crypto listings such as those by Gemini, Bullish, BitGo, and Figure Technology Solutions. This trend can be partly attributed to earlier U.S. government efforts under the Trump administration to prioritise regulatory clarity and foster innovation within the fintech sector, including crypto assets. Meanwhile, Frankfurt is emerging as a significant European hub, boosted by Germany’s progressive stance towards fintech and regulatory engagement.
The UK’s governance framework, by comparison, has not kept pace with the rapid evolution of digital assets. Observers from the Official Monetary and Financial Institutions Forum (OMFIF) highlight that the UK missed its earlier opportunity to lead in blockchain innovation due to slow regulatory adaptation and fragmented policy approaches. The absence of a clear roadmap for crypto asset classification, compounded by delays in implementing the European Union’s Markets in Crypto-Assets (MiCA) regulation, has created uncertainty that hinders institutional investment. For firms like Bitpanda, which rely on predictable regulatory environments to attract long-term capital, the UK’s environment has become a significant obstacle. The U.S. model—with its Securities and Exchange Commission (SEC) compliant frameworks and investor-friendly policies—has set a global benchmark, putting UK-based crypto firms at a relative disadvantage.
For investors, the implications are clear. Markets that combine liquidity and regulatory clarity—such as those in the U.S. and Frankfurt—offer more attractive risk-adjusted returns for crypto-focused firms. The U.S. market’s capacity to absorb high-growth IPOs amid sector turbulence demonstrates resilience, while Frankfurt provides an appealing alternative for companies keen to mitigate U.S. regulatory scrutiny. Bitpanda’s move away from the UK not only signals the declining attractiveness of London as a venue for high-growth tech listings but also reflects the broader challenges faced by the UK in sustaining its capital market vibrancy amid evolving global competition.
Looking ahead, digital asset firms intent on tapping public markets must take a nuanced, strategic approach. Critical considerations include prioritising exchanges with sufficient market depth to absorb asset volatility, aligning with jurisdictions that offer clear and innovation-friendly regulatory frameworks, and diversifying geographic exposure across U.S. and EU markets to hedge against geopolitical risks. Bitpanda’s focus on New York and Frankfurt exemplifies this strategy, positioning the firm to leverage global capital flows while navigating governance risks.
In conclusion, Bitpanda’s decision to abandon its LSE IPO plans is both a cautionary tale and a blueprint for adaptation within the crypto sector. It underscores that liquidity and regulatory clarity are not merely operational factors but existential determinants of success or failure for crypto exchanges aiming to go public. As the crypto landscape continues to evolve, the ability of firms and investors to recalibrate towards jurisdictions offering stability and depth will be pivotal in shaping the future trajectory of digital asset financial markets.
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Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative is current, published on August 26, 2025, and has not appeared elsewhere.
Quotes check
Score:
10
Notes:
No direct quotes are present in the narrative.
Source reliability
Score:
5
Notes:
The narrative originates from AInvest, a single-outlet platform, which raises concerns about its credibility.
Plausability check
Score:
7
Notes:
The narrative aligns with recent reports on Bitpanda’s decision to abandon its London IPO plans due to liquidity concerns. However, the lack of direct quotes and reliance on a single source diminishes its overall credibility.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative is current and aligns with recent reports on Bitpanda’s decision to abandon its London IPO plans due to liquidity concerns. However, the lack of direct quotes and reliance on a single source diminishes its overall credibility. The absence of direct quotes and reliance on a single source raises concerns about its credibility.
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