Trump Pro-Crypto Era Draws a16z Back Home, Cuts Down UK Operations

Silicon Valley venture capital giant Andreessen Horowitz (a16z) is refocusing its crypto efforts on the United States while scaling back its plans in the United Kingdom, as reported by the Financial Times.

Bitcoin (BTC) soared past $109,000 on Inauguration Day, setting a new all-time high as market sentiment surged following Donald Trump’s re-election.

The crypto rally reflects growing optimism over lighter regulations promised by the administration’s pro-crypto stance.

The venture capitalist company, managing $43 billion in committed capital, has responded by scaling down its UK operations and doubling down on U.S. opportunities.

Trump’s Executive Order Shifts Industry Focus

According to the Financial Times, a16z’s decision aligns with Trump’s recent executive order, which emphasizes fostering digital asset innovation.

The order aims to create a regulatory framework, explore a national digital asset stockpile, and repeal restrictive measures from the previous administration.

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The move has rejuvenated U.S. crypto prospects, prompting firms like a16z to recalibrate strategies.

“The executive order’s pro-crypto agenda has reshaped our investment priorities,” an anonymous a16z insider told the Financial Times on January 23.

UK Operations Take a Backseat

In 2023, a16z opened its first international office in London, signaling a push to tap into the UK’s crypto ecosystem.

However, insiders revealed the firm is now reducing investments and scaling back operations in the region.

Key UK-backed projects like Arweave, Aztec, and Improbable are expected to see reduced local involvement.

One UK official expressed disappointment, saying, “Their local presence was never really here,” highlighting that decision-making remained centralized in the U.S.

The shift also coincides with leadership changes. Sriram Krishnan, formerly leading a16z’s London office, stepped down last year to join the Trump administration as an advisor.

Founders Marc Andreessen and Ben Horowitz, known Trump supporters, have reportedly played advisory roles in shaping the administration’s crypto policies.

Trump’s executive order has sparked renewed investor confidence.

According to CoinGecko, coins within the XRP Ledger ecosystem, such as Sologenic and Crypto Trading Fund, now boast market caps exceeding $100 million.

This mirrors broader market enthusiasm tied to regulatory clarity.

A16Z Outlines Key Crypto Trends for 2025

Andreessen Horowitz has identified five key trends shaping the crypto landscape in 2025. Mobile wallets have emerged as a major driver of retail adoption, with over 35 million monthly users in 2024.

Leading apps like Coinbase Wallet and MetaMask dominate, while emerging markets show strong growth as mobile wallets address the needs of unbanked populations.

Stablecoins have gained momentum thanks to lower transaction fees, making them ideal for cross-border payments and inflation hedging in countries such as Argentina and Turkey.

Enterprise adoption is also on the rise, signaling a growing role for stablecoins in mainstream finance.

The approval of Bitcoin and Ethereum ETFs in the U.S. has simplified crypto investing, though uptake has been gradual.

These ETFs currently hold $110 billion in Bitcoin and $13 billion in Ethereum, with further growth expected as institutional players drive adoption.

Decentralized exchanges (DEXs) are gradually capturing market share from centralized exchanges (CEXs), handling 11% of spot trading.

Volume has surged on high-throughput chains like Solana and Base, although retail adoption remains slow.

Transaction fees have become a critical metric for tracking blockchain demand. In 2024, Solana surpassed Ethereum in total fees collected, signaling the maturation of its ecosystem.

This highlights the importance of measuring the economic value facilitated by various blockchains to assess the industry’s progress.