I've noticed that among institutional investors, the way they approach digital assets has significantly changed recently. Of particular note is that, now several years after the collapse of FTX, the once cautious attitude is finally beginning to fade.

This is a change that only someone with long-standing industry experience can sense. Ron Viscardi, who runs the iConnections platform and manages over $55 trillion in assets, tracks thousands of meetings with institutional investors and fund managers each year. The data reveals how quickly market sentiment can reverse. After surviving the crypto winter of 2022, interest has stabilized since last year, and since the beginning of this year, there has been a clear increase in movements to "reallocate funds and invest again." Expectations of regulatory shifts in Washington are also fueling this trend.

What I feel during this event season is that the market is no longer overheated, nor is it being avoided; it’s in a highly balanced state. The figure of over 75 digital asset funds participating in about 750 meetings is comparable to the pre-FTX collapse levels of 2022. In other words, roughly a quarter of allocators are showing interest in digital asset strategies, indicating that cryptocurrencies are no longer seen as peripheral allocations but as an established investment category.

The movement of family offices is particularly interesting. Those with a track record of investing in emerging and innovative asset classes tend to have higher interest as allocators. In crypto hubs like Dubai, Switzerland, and Singapore, traditional financial advisors are increasingly pressured to suggest digital assets to wealthy clients.

Bitcoin is currently trading around $77.14K, up since the start of the year, but overall market volatility remains high. Stocks of major companies like Coinbase are also fluctuating significantly. Still, the interest from allocators remains undiminished.

An important point Viscardi highlights is that digital asset managers have almost gained "institutional legitimacy." Bitcoin has already crossed that threshold. Altcoins are approaching it. The remaining challenge is the regulatory framework. This is the top priority and will be a key factor in investment decision-making for allocators.

Large investors must remember that they are trustees. They are entrusted with assets that are not their own but belong to others. Therefore, they will only allocate funds once they can explain to their boards that they are executing in a "safe and responsible manner."

What’s fascinating is that the tone of the discussion has completely changed. In 2022, some investors questioned whether cryptocurrencies were genuine or just Ponzi schemes. Now, such debates have almost disappeared.

In fact, traditional and cautious capital is beginning to enter. Some foundations are starting to invest in Bitcoin and Ethereum ETFs. Because allocators prioritize avoiding sharp fluctuations and long-term stability, they are taking a strategy of adding modest exposure rather than rebuilding entire portfolios. Many investors expect stock market returns to be subdued going forward, making this approach logical.

However, the position of Bitcoin remains crucial. Many allocators treat it less as a store of value and more as a "far riskier asset." During market stress, Bitcoin correlates more with stocks than with gold.

Direct purchase of tokens by institutional investors remains rare. Instead, investments are mainly made through ETFs and fund structures. Allocators delegate specific coin selection to GPs (general partners).

A noticeable trend is the increase in sponsorship activities by crypto companies. This year’s events featured major sponsors like BitGo, Galaxy Digital, Ripple, and Blockstream, with the number of sponsoring firms rising significantly. This itself signals the institutionalization of the industry.