Former employees of BlockTower Capital and Goldman Sachs Group Inc. have launched a new digital asset investment firm, Neoclassic Capital, with a focus on crypto derivatives, real-world asset tokenization, entertainment, gaming, and social media. The company plans to invest in both private and public cryptocurrency markets, attracting investments from prominent figures like Jeff Vinik, owner of the Tampa Bay Lightning, as well as venture capitalists Marc Andreessen and Chris Dixon. Neoclassic Capital’s co-founders, Michael Bucella and Steve Lee, previously worked at BlockTower, bringing their expertise to this new venture.
Crypto derivatives have gained significant traction in the US financial industry, emerging as popular products alongside spot trading. Coinbase Global, a leading cryptocurrency exchange, has introduced a new platform for trading cryptocurrency derivatives, catering to the growing demand among American crypto enthusiasts.
Despite a decline in overall crypto funding in 2023, venture funding for cryptocurrency businesses surged in the fourth quarter, reaching $1.9 billion. This increase marks a significant growth from the previous quarter and reflects renewed investor interest in the cryptocurrency space. However, challenges such as high-profile failures of venture-backed firms and tighter monetary policies have impacted the overall investment landscape. Nonetheless, venture capital investments in cryptocurrency businesses have shown resilience, signaling ongoing opportunities for growth and innovation in the market.