Industry Veterans Launch Firm Focusing On Crypto Derivatives, RWA Tokenization

Two former employees of BlockTower Capital and Goldman Sachs Group Inc. have started a new digital asset investment company that focuses on crypto derivatives, tokenization of real-world assets, entertainment, gaming, and social media, according to Bloomberg.

Neoclassic Capital to Invest in Cryptocurrency Marketplaces

According to Bloomberg, Michael Bucella and Steve Lee, who co-founded Miami-based Neoclassic Capital, stated in an interview that the company will invest in private and public cryptocurrency marketplaces. Jeff Vinik, the owner of the Tampa Bay Lightning, and venture capitalists Marc Andreessen and Chris Dixon have all invested in the company since its January launch. The pair most recently worked for the digital asset investment business BlockTower.

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Crypto Derivatives in the US See Steady Rise

According to Forbes, one of the most well-liked products to emerge from the cryptocurrency segment of the global financial industry is cryptocurrency derivatives. Crypto derivatives are catching up to spot trading, which is still the most preferred choice for cryptocurrency traders.

Indeed, cryptocurrency derivatives are becoming more and more popular in the US, and American cryptocurrency aficionados now have access to a brand-new platform for trading cryptocurrency derivatives profitably. None other than Coinbase Global, a cryptocurrency exchange, would be the new protocol.

Crypto Market Investment Ascends

CNBC highlights that venture funding for businesses involved in the cryptocurrency space reached $1.9 billion in the fourth quarter of 2023—a 2.5% rise from the previous quarter. For the first time since the March quarter of 2022, venture capital investments in cryptocurrency businesses have increased quarter on quarter.

However, the overall crypto funding in 2023 saw a steep decline. Multiple high-profile failures of venture-backed cryptocurrency industry firms reduced allocator demand for exposure, while tighter monetary policy increased capital costs and reduced venture allocations overall. Finally, by the time 2023 concluded, just slightly more than half of the agreements represented a third of the total amount of venture capital invested in cryptocurrency during the preceding two years.

For crypto entrepreneurs who have been battered by the past few years of the so-called “crypto winter,” which made it more difficult for founders to get capital, this statistic is encouraging. On the other hand crypto derivatives have seen a bit of a rise. making the investments more alluring.

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