Peter Thiel-backed crypto exchange looks to New York as UK struggles to attract global fintech players

August 2025 – The Austrian cryptocurrency exchange Bitpanda, backed by Silicon Valley billionaire Peter Thiel, has confirmed that it will not pursue a stock market listing in London. The decision, disclosed by co-founder and chief executive Eric Demuth, underscores a growing crisis of confidence in the UK’s capital markets and highlights the magnetic pull of New York for the world’s most ambitious financial technology companies.

Demuth was unequivocal in his assessment. “London is no longer a viable option for a company like ours,” he said in an interview. “Liquidity levels are simply too low, and institutional interest in crypto remains muted. If you want a global stage for a listing today, you go to New York.”

The Flight to Wall Street

Bitpanda’s rejection of London is part of a wider trend that has seen crypto firms flock to the United States. Over the past year, multiple digital asset platforms and blockchain-focused companies have chosen the New York Stock Exchange and Nasdaq as their preferred destinations for initial public offerings (IPOs). Executives cite deep capital pools, stronger institutional engagement, and robust regulatory frameworks as decisive factors.

The U.S. government’s surprisingly supportive stance toward digital assets has also been pivotal. After years of regulatory uncertainty, Washington has shifted toward providing clearer rules for exchanges, custody providers, and token issuers. This has reassured investors and allowed crypto companies to present themselves as credible players within the mainstream financial system.

By contrast, London has struggled to project a coherent vision. Despite repeated government promises to transform the UK into a “global hub for crypto innovation,” the city’s exchanges have failed to attract blockbuster listings. Several high-profile fintechs that went public in London over the past five years have seen their valuations collapse, leaving investors wary of backing new entrants.

A Blow to the City

For the City of London, Bitpanda’s snub is a symbolic setback. The UK capital has long prided itself on being Europe’s financial powerhouse, but its ability to compete with Wall Street for high-growth, global companies is increasingly being questioned. Analysts say Brexit has exacerbated the problem, cutting London off from parts of the European investor base and creating a perception of diminished relevance.

“The fact that a company as dynamic as Bitpanda won’t even consider London speaks volumes,” said James Cartwright, a financial markets analyst at Nomura. “It reinforces the narrative that the City is no longer the natural home for ambitious tech and crypto firms.”

Liquidity is central to this debate. Without sufficient trading volume and investor participation, new listings risk being undervalued or overlooked. London has faced several embarrassing examples of companies listing with fanfare only to see their shares stagnate. The contrast with the U.S., where institutional investors routinely deploy billions into new tech listings, is stark.

The Rise of Bitpanda

Founded in Vienna in 2014, Bitpanda has grown rapidly into one of Europe’s leading cryptocurrency exchanges. With more than four million users, it offers trading in digital assets alongside traditional securities such as stocks and precious metals. Backed by Peter Thiel’s Founders Fund and other venture capital heavyweights, the company has positioned itself as a bridge between old finance and new digital markets.

Bitpanda’s growth reflects the broader mainstreaming of crypto in Europe. Yet Demuth has been candid about the limitations of the continent’s capital markets. “If Europe wants to keep its champions, it needs to provide the right conditions,” he said. “Otherwise, we will continue to see our best companies cross the Atlantic.”

What Next for London?

The UK government is under mounting pressure to respond. Chancellor of the Exchequer Rachel Reeves has promised reforms aimed at boosting the competitiveness of London’s markets, including loosening listing rules and offering tax incentives for institutional investors. But critics argue that such measures may be too little, too late.

There is also a deeper question of perception. International investors increasingly see London as a secondary option compared with New York, particularly in high-growth sectors such as technology, biotech, and digital assets. Until that perception changes, experts warn, companies like Bitpanda will continue to give the City a wide berth.

A Shift in Global Finance

Bitpanda’s decision illustrates a broader realignment in global finance. For decades, London competed toe-to-toe with New York for listings, but Wall Street now appears to have reasserted its dominance. With crypto entering the financial mainstream, the U.S. is determined not to miss the opportunity, while Europe risks being left behind.

As Eric Demuth concluded in his remarks: “It’s not about nostalgia or tradition. It’s about liquidity, investor confidence, and growth. Right now, New York has all three. London doesn’t.”

Whether policymakers in the UK can reverse this tide remains uncertain. What is clear, however, is that the battle for the future of financial markets—and the place of crypto within them—is being decisively fought on Wall Street, not in the City of London.