Global Crypto Shift: Why a16z Is Moving Focus from UK to US, Report
- Andreessen Horowitz cuts back UK crypto investments, aligning with the USs growing crypto-friendly regulatory environment.
- US crypto-friendly policies boost investor confidence, with Bitcoin soaring above $109,000 after Trumps executive order.
- Venture capital firms, including a16z, shift focus to US crypto market as Trumps policies create a favorable investment climate.
Andreessen Horowitz (a16z), a well-known venture capital company in Silicon Valley, has shifted its global approach and cut back its crypto investments in the United Kingdom. This is in line with another development which has been taking place in the backdrop of increasing focus of the US administration towards digital assets.
As a result of President Donald Trumps executive order on digital assets and formation of a national digital wealth fund, the US has become a more supportive jurisdiction for crypto companies and a16z had to reduce its activities in the UK.
The decision of the firm to reduce its exposure to UK cryptocurrencies also means a shift in the firms global strategy. Although a16z will be cutting back on direct investments in the UK market, it will still work with UK-based crypto projects through its US office. This shift exposes the general change in venture firms approach to allocate their capital amidst the dynamics of the global regulations.
Global Shift to US Crypto
Changpeng Zhao, the former CEO of Binance also agreed with this statement on Saturday, and said that the US is slowly becoming the major center for digital assets business. He pointed out that the US welcoming the industry means other countries will have to try even harder to catch up in this new area. Zhaos remarks reflect a new trend in the global digital assets space, which sees investors rushing to the US, under the permissive framework set by Trumps government.
In line with Trumps executive order, the most important objective is to create a set of rules that will help develop the market and solve the existing problems concerning compliance and stability of the market. This has brought about renewed investor confidence, which has seen the value of Bitcoin rise to an all-time high of above $109,000 just at the time of Trumps inauguration. The rising prices are an assurance of investors confidence in the new administration for the growth of digital assets.
US Gains Institutional Support
Other proponents of Trumps crypto vision include Marc Andreessen and Ben Horowitz, co-founders of a16z, which means that USs policy supportive of cryptocurrencies is backed by institutional players. Their endorsement and a16zs shift of direction support the idea that the US is gradually emerging as the key player in the investment and developments.
The change in strategy also comes after Sriram Krishnan, a16zs former head of its London office, left the firm last year to join the Trump administration. This transition in leadership also shows that the company is expanding its participation in the US crypto policy, a trend that is also seen with venture capital firms as they narrow down their focus on the US market.
Read more: https://www.tronweekly.com/global-crypto-shift-why-a16z-is-moving-focus/
Text source: TronWeekly
