Bitcoin’s Crash Can’t Deter Big Money – But Why?

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Finance

What to know:

  • Institutional interest in digital assets remains as fervent as a Victorian gentleman’s fascination with the avant-garde, with this year’s iConnections conference hosting more than 75 digital asset funds and 750 meetings between managers and allocators-proof that even in the age of crypto winters, the wealthy are never short of a gamble.
  • Nearly a quarter of limited partners on the iConnections platform now express interest in digital asset strategies, a development that signals crypto has ascended from a fringe curiosity to a mainstream sleeve within alternative investments. One might say it’s finally shed its reputation as a “get-rich-quick” scheme-though the joke remains on the uninitiated.
  • While bitcoin is seen as having achieved institutional legitimacy, broader adoption of altcoins remains constrained by regulatory uncertainty, iConnections CEO Ron Biscardi said. A sentiment akin to a man declaring himself “legitimate” after a few years of dodging tax inspectors.

The mood around digital assets has shifted again among the world’s largest allocators, according to Ron Biscardi, CEO of iConnections, which runs one of the largest capital introduction conferences globally. One might argue that the “mood” here is less a shift and more a calculated pivot, like a ship turning its bow toward the nearest iceberg.

Biscardi, who has spent more than 25 years in the alternative investment industry and runs a platform that represents over $55 trillion in assets, has a front-row seat. His firm tracks thousands of meetings between fund managers and institutional investors each year. That data shows how quickly sentiment can turn-much like the weather in a British garden, which is never quite settled but always ready to surprise.

After a couple of “rough” years following the crypto market crash following the FTX collapse in 2022, interest began to stabilize at last year’s conference, he recalls. “[In 2025] we started to see funds wanting to come back, wanting to spend some money,” he said. Optimism around a more crypto-friendly regulatory stance in Washington helped, even if progress has been slow. One might say the regulatory landscape is as predictable as a Shakespearean tragedy-full of twists, but never quite ending in a resolution.

“I feel like what we’re seeing now at the event [this year] is a more normal experience,” Biscardi said. “It’s not extremely crazy, but it’s also not [like] ‘I don’t want to go anywhere near it.’” A statement that could just as easily be applied to a timid guest at a masquerade ball.

A change of tone

More than 75 digital asset funds participated in this year’s event, generating roughly 750 meetings between managers and allocators, a level comparable to 2022 when crypto interest soared before the FTX collapse. Nearly one quarter of limited partners on the iConnections platform now indicate interest in digital asset strategies, reinforcing that crypto has become an established sleeve within alternatives rather than a fringe allocation. One might say it’s finally graduated from the “novelty” category to “serious investment”-though the latter term is used loosely.

Family offices represent the largest LP cohort expressing interest, consistent with their track record of backing emerging and innovation-driven asset classes. A habit as old as the hills, and as risky as a game of Russian roulette with a loaded gun.

And this trend has been growing in recent years. While some family offices remain cautious about the asset, many traditional wealth managers are under mounting pressure to deliver digital assets to wealthy clients, particularly in crypto hotspots like Dubai, Switzerland and Singapore. A race to the top, where the prize is not gold but digital tokens, and the track is paved with caution and confusion.

This interest is very much alive despite the crypto winter, with the price of bitcoin down nearly 25% since the beginning of the year and its market cap losing more than a trillion in value since October’s all-time high. Stocks of popular crypto companies, like Coinbase (COIN) or Strategy (MSTR), are also trading significantly lower this year, underperforming most other tech stocks. A reminder that even the most glittering promises can fade like a sunset over a desert.

Biscardi, however, believes digital asset managers are “very, very close to achieving institutional legitimacy.” Bitcoin, he said, has already crossed that line, but altcoins are close. “The last piece is really the regulatory framework that lets them do it safely.” A statement that sounds less like a promise and more like a hopeful wish.

For chief investment officers, that issue dominates. “The regulatory hurdles are number one,” Biscardi said. “It just always goes back to that.” A truth as immutable as gravity, and just as unavoidable.

Large allocators, he noted, are fiduciaries. “It’s not their money, they’re fiduciaries for other people’s money, and it might be a super interesting category, but they’re just not going to allocate there until they can tell their board that they’re doing it in a responsible, safe way.” A sentiment as pragmatic as it is uninspiring.

The tone of the debate has also changed. In 2022, some investors still questioned whether crypto was real or a Ponzi scheme. “That I don’t hear any of that anymore,” Biscardi said. A testament to the power of marketing, or perhaps the sheer audacity of the crypto crowd.

In fact, some traditionally conservative pools of capital, for example, have stepped in. Endowments, which tend to focus on long-term stability and avoid sharp swings in new asset classes, have begun allocating to bitcoin and ether exchange-traded funds. The idea is not to overhaul portfolios but to add measured exposure that could lift returns in years when crypto markets perform well, especially as many investors expect equities to deliver more muted gains than in the past decade. A strategy as cautious as a cat walking on a tightrope.

Still a risk asset

Nevertheless, allocators treat bitcoin “much more as a risk asset” than a store of value. “Bitcoin just hasn’t behaved that way,” he said, pointing to its correlation with equities rather than gold during market stress. A reminder that even the most celebrated assets can be as fickle as a society belle’s affections.

Similarly, direct token buying remains rare among institutions. Instead, he hears more about ETFs and fund structures. Limited partners rely on general partners to choose specific coins. “The LPs who get bought into the space are really looking to the GPs to make those decisions.” A dynamic as trustful as a child relying on a magician to keep their secrets.

What’s not rare is crypto companies investing in spreading awareness of their products and services. According to Biscardi, sponsorship numbers saw a substantial uptick at this year’s event, with companies like BitGo (BTGO), Galaxy Digital (GLXY), Ripple and Blockstream all holding top-tier sponsor status. A spectacle as dazzling as a carnival in a desert, though the confetti may be made of digital tokens.

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2026-03-01 20:24