Traditional Giants Remain Interested Despite Bitcoin Losses

The sentiment surrounding digital assets has shifted again among the world's largest investors, according to Ron Biscardi, CEO of iConnections, one of the largest capital raising platforms globally. With over 25 years of experience in the alternative investment industry, Biscardi has a unique perspective, as his firm tracks thousands of meetings between fund managers and institutional investors annually. This data underscores how quickly sentiment can shift.

After several turbulent years, when the crypto market crashed following the collapse of FTX in 2022, interest began to stabilize again last year. "In 2025, we saw funds willing to invest again," he says. Optimistic expectations of a more crypto-friendly regulatory environment in Washington have contributed to this renewed interest, although progress has been slow.

A changing tone

This year, more than 75 digital asset funds participated in the event, generating approximately 750 conversations between fund managers and allocators, similar to the surge in interest in 2022 before the FTX crisis. Nearly a quarter of limited partners (LPs) on the iConnections platform now express interest in digital asset strategies, demonstrating that crypto has established itself as a serious alternatives asset class, rather than a marginal allocation.

Family offices represent the largest group of LPs expressing interest, reflecting their history of supporting emerging and innovative asset classes. This trend continues to grow; while some family offices remain cautious, traditional wealth managers are under increasing pressure to offer digital assets to high-net-worth clients, particularly in crypto hotspots like Dubai, Switzerland, and Singapore.

De interesse blijkt onverminderd, ondanks de zogenaamde “crypto-winter,” waarbij de prijs van bitcoin nu bijna 25% is gedaald sinds het begin van het jaar en de marktwaarde van digitale activa meer dan een triljoen dollar heeft verloren sinds de piek vorig jaar oktober. Aandelen van populaire crypto-bedrijven zoals Coinbase en MicroStrategy presteren ook significant slechter dan de meeste andere technologieaandelen dit jaar.

Still, Biscardi believes digital asset managers are "very, very close to institutional legitimacy." Bitcoin has already crossed this line, but altcoins are on their way. "The final element is really the regulatory framework that allows them to do it safely," he adds.

For chief investment officers, this issue is at the heart of their concerns. "The regulatory hurdles are number one," says Biscardi. "It always comes down to that." Large allocators are fiduciaries who manage money that isn't their own. "It can be a tremendously interesting category, but they won't invest until they can assure their boards they're doing so responsibly and safely."

The tone of the debate has also changed. In 2022, some investors still questioned whether crypto was real or merely a pyramid scheme. "I don't hear that here anymore," Biscardi notes. Even traditional, conservative capital sources are now actively involved. Endowment funds, which typically focus on long-term stability and avoid sharp swings in new asset classes, have begun investing in bitcoin and ether exchange-traded funds. The goal isn't to radically overhaul portfolios, but to add gradual exposure that can boost returns in years when crypto markets perform well, especially now that many investors expect stock markets to deliver modest gains compared to the past decade.

Despite this, allocators treat bitcoin "much more like a risky investment" than a store of value. "Bitcoin hasn't behaved that way in that regard," he explains, noting its correlation with stocks rather than gold during market uncertainty. Similarly, direct purchases of tokens remain rare among institutions. However, we're increasingly hearing about ETFs and funds. Limited partners (LPs) rely on general partners (GPs) to select specific coins. "The LPs that are coming in are really looking to the GPs to make these decisions."

It's not uncommon for crypto companies to invest in raising awareness of their products and services. Biscardi notes that the number of sponsors has seen a significant increase this year, with companies like BitGo, Galaxy Digital, Ripple, and Blockstream all achieving top sponsor status.

Frequently Asked Questions

What does the renewed interest in crypto mean for investors?
The renewed interest among major allocators signals a shift in crypto from a fringe to a more established asset class. This offers investors the opportunity to join a growing segment that is increasingly being accepted by traditional investors.

How important is regulation now for the adoption of digital assets?
Regulation remains a crucial factor for institutional adoption of digital assets. Investors are waiting for a clear and secure regulatory framework before making large allocations.

Why do some investors remain cautious about crypto?
Despite the growing interest, there is still some reluctance, especially among investors who do not want to invest in high-volatility assets without solid, safe and regulated structures.