The recent relocation of crypto startup Concrete from the San Francisco Bay Area to New York’s Meatpacking District symbolizes a broader digital-asset revival in the city.
This year, over a dozen crypto-related companies, ranging from emerging startups to established firms, have either opened or are preparing to establish offices in New York. This influx is largely attributed to a more favorable sentiment towards cryptocurrencies as the sector emerges from a period of instability. Additionally, Silicon Valley’s current focus on artificial intelligence has shifted attention away from crypto.
The previous bear market in crypto, coupled with intensified regulatory scrutiny in the US, led to a significant migration of crypto startups and founders from San Francisco. However, recent setbacks for the US Securities and Exchange Commission in its regulatory battles and the approval of Bitcoin exchange-traded funds have been seen as major milestones for the industry.
Concrete CEO Nic Roberts-Huntley expressed optimism about the industry’s prospects, noting, “I think very bullish [of] the current outlook.”
Anticipation for a more crypto-friendly administration in the upcoming presidential election is also influencing the sector. Former President Donald Trump, once a critic, has emerged as a prominent supporter of Bitcoin. Roberts-Huntley remarked, “If we see a Republican administration come in, it seems that might be more bullish for crypto more broadly, which is fantastic.”
High-profile crypto figures, including Kraken co-founder Jesse Powell and Gemini founders Tyler and Cameron Winklevoss, have donated to Trump’s campaign, reflecting a broader trend of increased enthusiasm for crypto in New York.
Mirza Uddin, head of business development at Injective Labs, noted a shift in the industry narrative, saying, “That’s why I think the narrative has shifted like in recent months, even in New York.”
Currently, over 130 crypto firms have established offices in New York. Among them, 20 focus on decentralized finance, 14 on nonfungible tokens, and 13 on centralized finance, such as crypto exchanges, according to crypto venture fund Archetype.
Katherine Wu, a venture partner at Archetype, observed that New York’s longstanding reputation as a financial and cultural capital makes it a natural fit for expanding the crypto sector.
Looking ahead, new entrants such as Foresight, Plume, and Eigen Labs—recently funded with $100 million by Andreessen Horowitz—are set to establish New York offices in 2024. They join a growing roster of crypto firms, including Superstate, Hadron FC, Tread.fi, Dragonfly, and Blockchain Capital, which have all set up shop in the city this year.
A week after Concrete’s move, Coinfund hosted a well-attended happy hour event for crypto enthusiasts in proximity to Concrete’s new office. Additionally, The Science of Blockchain Conference, previously held at Stanford University, is moving to Columbia University in New York this month.
Zorayr Khalapyan, co-founder of Blackwing, who recently relocated from the Bay Area, noted, “We saw more crypto companies being built in New York.” Khalapyan, who has also worked internationally, emphasized that if his focus were on AI, he would still be in San Francisco.
The current crypto resurgence echoes the wave seen in 2021 when Coinbase and Ava Labs established their first New York offices, and Mayor Eric Adams pledged to position the city as a crypto hub. Despite the historical context of New York’s stringent crypto regulations, which have led some firms to leave, the renewed enthusiasm for digital assets is palpable.
Tom Schmidt, a general partner at Dragonfly, cautioned that it is too early to predict long-term impacts. “This sort of sentiment shift in politics has happened in the past four months or so. I don’t even know what kind of meaningful policy changes are going to happen downstream,” he said.
Related Topics:
