Wintermute Plans US Expansion with New New York Office, Eyes OTC and Derivatives Growth

London-based algorithmic crypto trading firm Wintermute has announced its plans to expand into the United States with the opening of a new office in New York. The move marks a shift in the company’s business focus, which has primarily centered on the Asian markets in recent years. The expansion into the US comes as Wintermute’s CEO, Evgeny Gaevoy, anticipates a favorable regulatory environment for crypto firms under the Trump administration.

New York Office Marks Wintermute’s US Push

In an interview with Bloomberg on February 19, Gaevoy revealed that the company’s new focus would be on the US market. He cited the country’s evolving pro-crypto regulatory stance as a key factor driving Wintermute’s decision to make the move. "We are looking to expand in the US with our OTC offering, and we are looking to expand in the US with derivatives as well on the OTC side," Gaevoy said.

Wintermute’s new office will initially consist of a small team of five to 10 people, primarily focused on business development and some operational support. However, Gaevoy clarified that the company would not be hiring for trading roles in the US office. The expansion signals the firm’s intention to tap into the US market’s growing demand for over-the-counter (OTC) trading services and derivatives.

A Favorable Regulatory Outlook

Gaevoy is optimistic about the regulatory landscape under the Trump administration, which he believes will provide a more favorable environment for crypto firms. He anticipates that the US government will drop several regulatory charges against crypto protocols and securities in the short term. "We expect numerous charges to be dropped, and this could help set a precedent for global crypto regulations," he said.

Wintermute’s expansion into the US market reflects the company’s confidence in the evolving regulatory framework, which is expected to support innovation and growth in the crypto sector. With a more pro-crypto administration in place, Wintermute sees an opportunity to strengthen its presence in the US and expand its offerings to meet growing demand for crypto derivatives and OTC services.

The Impact of Memecoins on Crypto Liquidity

In addition to discussing Wintermute’s US expansion plans, Gaevoy also shared his thoughts on the growing memecoin ecosystem, which he believes is having a negative impact on the broader crypto market. He described memecoins as “a big drag on crypto” due to their tendency to drain liquidity from more established projects.

Gaevoy pointed to the Trump memecoin as an example of how new tokens can quickly attract significant market caps, only to experience sharp sell-offs. "When Trump token launched, it went up to a pretty significant market cap, but it basically saw a massive sell-off on pretty much all other memecoins on Solana," he explained. He argued that this cycle—where the launch of new tokens siphons liquidity away from existing projects—poses a challenge to the overall growth of the space.

Despite his concerns about memecoins, Gaevoy noted that price declines in new tokens are part of the natural lifecycle of these assets and are not directly influenced by platforms like Binance or Wintermute. The volatility and short-lived nature of many memecoins are inherent to the broader crypto market dynamics.

Looking Ahead: Wintermute’s Role in the US Market

As Wintermute moves forward with its expansion into the US, the firm will continue to focus on its core strengths in algorithmic trading and OTC services. With an eye on both regulatory developments and market trends, Wintermute is poised to play a significant role in shaping the future of crypto trading in the US.

By opening its New York office and targeting the growing demand for OTC and derivatives trading, Wintermute is positioning itself to capitalize on the opportunities presented by a pro-crypto regulatory environment in the US. With its proven track record in the Asian markets and a strong focus on business development, Wintermute is well-equipped to navigate the complexities of the US market and further solidify its position as a leading player in the global crypto trading space.