The mood around digital assets among the world’s biggest allocators is changing again, said Ron Biscardi, CEO of iConnections, which runs one of the world’s largest capital introduction conferences.
Mr. Biscardi, who has spent more than 25 years in the alternative investment industry and runs a platform with more than $55 trillion in assets, has a front-row seat. His company tracks thousands of meetings between fund managers and institutional investors each year. This data shows how quickly sentiment can change.
He recalls that interest began to stabilize at last year’s conference after several “difficult” years following the crypto market crash following the FTX collapse in 2022. “(In 2025) the funds are coming back and people are starting to want to spend their money,” he said. Optimism about a more crypto-friendly regulatory stance in Washington helped, even if progress was slow.
“I think what we’re seeing at (this year’s) event is a more normal experience,” Biscardi said. “It’s not super crazy, but it’s not like I want to stay away from it either.”
change in tone
More than 75 digital asset funds participated in this year’s event, with around 750 meetings between managers and allocators, comparable to 2022, when interest in cryptocurrencies soared before the FTX collapse. Nearly a quarter of limited partners on the iConnections platform are now interested in digital asset strategies, confirming that cryptocurrencies are becoming an established sleeve among alternatives rather than fringe allocations.
Family offices represent the largest cohort of LPs expressing interest, consistent with our track record of supporting emerging, innovation-driven asset classes.
And this trend has been increasing in recent years. While some family offices remain cautious about the asset, many traditional wealth managers are under increasing pressure to offer digital assets to wealthy clients, particularly in crypto hotspots such as Dubai, Switzerland and Singapore.
Due to the price of Bitcoin, this interest is very much alive despite the crypto winter. It has fallen nearly 25% since the beginning of the year, and its market capitalization has fallen by more than $1 trillion from its all-time high in October. Shares of popular crypto companies like Coinbase (COIN) and Strategy (MSTR) have also fallen significantly this year, underperforming most other tech stocks.
But Biscardi believes digital asset managers are “very close to achieving institutional legitimacy.” According to him, Bitcoin has already crossed that line, but altcoins are getting closer. “The last part is the regulatory framework to actually do it safely.”
For chief investment officers, this issue is of paramount importance. “Regulatory hurdles are the biggest hurdle,” Biscardi said. “I always go back to that.”
He pointed out that large allocators are trustees. “It’s not their money, they’re trustees of other people’s money, and that might be a very interesting category, but they’re not going to allocate it there until they can tell the board that they’re doing it in a responsible and safe way.”
The tone of the debate has also changed. Even in 2022, some investors were still questioning whether cryptocurrencies were real or Ponzi schemes. “I don’t hear anything like that anymore,” Biscardi said.
Indeed, for example, some traditionally conservative funding pools have intervened. Funds that value long-term stability and tend to avoid wild swings in new asset classes are starting to allocate money to Bitcoin and Ethernet exchange-traded funds. The idea is not to completely overhaul your portfolio, but to add measured exposure that could boost returns during a strong few years of crypto markets, especially since many investors expect equity returns to be slower than in the past decade.
remains a risk asset
Despite this, allocators treat Bitcoin “as a risk asset” rather than a store of value. “Bitcoin hasn’t behaved that way,” he said, noting that during market stress, Bitcoin is correlated with stocks, not gold.
Similarly, direct token purchases between institutions remain rare. Instead, ask for details about the structure of the ETF or fund. Limited partners rely on general partners to select specific coins. “LPs entering this space are very much looking forward to GP decisions.”
It is not uncommon for cryptocurrency companies to invest in spreading awareness of their products and services. Biscardi said this year’s event saw a significant increase in the number of sponsors, with companies such as BitGo (BTGO), Galaxy Digital (GLXY), Ripple, and Blockstream all holding top sponsor status.
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