The sentiment surrounding digital assets has shifted significantly among major allocators, according to insights shared by Ron Biscardi, CEO of iConnections, a leading platform for capital introduction that facilitates networking at large financial conferences. Biscardi, who has extensive experience in the alternative investment market and oversees a platform that represents over $55 trillion in assets, has unique visibility into the evolving landscape of investment.
After enduring a challenging period following the 2022 collapse of FTX and the subsequent downturn in the crypto market, interest in digital assets began to stabilize during the previous year’s conference. “In 2025, we started seeing funds wanting to come back, wanting to spend some money,” he noted. This resurgence is partly fueled by optimism surrounding a potentially more favorable regulatory environment in Washington, albeit progress has been gradual.
The current atmosphere at this year’s event appears more balanced than in previous years. “It’s not extremely crazy, but it’s also not ‘I don’t want to go anywhere near it,'” Biscardi observed, indicating a healthy middle ground in investor sentiment. More than 75 digital asset funds were present, resulting in approximately 750 meetings between fund managers and institutional investors, a level reminiscent of the excitement leading up to the FTX crisis in 2022.
Notably, around 25% of limited partners using the iConnections platform have expressed interest in digital asset strategies, signaling that cryptocurrencies are gaining acceptance as a legitimate component of alternative investments rather than remaining confined to the fringes. Family offices, historically known for backing emerging asset classes, represent the largest group of interested limited partners.
Despite a challenging year for cryptocurrencies, with Bitcoin’s value down nearly 25% from the start of the year and the market losing over a trillion dollars since its peak, interest from traditional wealth managers is on the rise. They face increasing pressure to meet client demand for access to digital assets, particularly in affluent markets like Dubai, Switzerland, and Singapore.
Analysts like Biscardi believe that digital asset managers are on the cusp of attaining institutional legitimacy, with Bitcoin already having crossed that threshold and altcoins poised to follow. He emphasized that the regulatory framework necessary for safe investments in cryptocurrencies is the final barrier to broader institutional participation. “The regulatory hurdles are number one,” Biscardi stated, noting that large allocators, often acting as fiduciaries for other people’s money, require solid assurances of responsible investment practices before proceeding.
The narrative surrounding cryptocurrencies has also evolved. In 2022, some investors expressed skepticism about the legitimacy of digital assets, even likening them to Ponzi schemes. “I don’t hear any of that anymore,” Biscardi remarked. This shift has seen even traditionally conservative investors, such as endowments and other long-term focused funds, beginning to allocate capital to Bitcoin and ether exchange-traded funds as a way to enhance returns in an era of potentially subdued equity performance.
However, it’s important to note that institutional allocators continue to approach Bitcoin primarily as a risk asset rather than a stable store of wealth, primarily due to its correlation with stock markets rather than gold. Direct purchases of tokens remain infrequent among institutions, which show greater interest in exchange-traded funds (ETFs) and specialized fund structures managed by general partners. These general partners are tasked with selecting specific assets for investment.
In parallel, crypto companies have ramped up efforts to enhance awareness of their offerings. Sponsorships at this year’s event have notably increased, with notable companies like BitGo, Galaxy Digital, Ripple, and Blockstream taking prominent sponsorship roles, signaling a concerted effort to promote the digital asset industry.
