At the recent iConnections conference in Miami, a notable shift in sentiment towards digital assets was observed among major institutional allocators, despite the ongoing decline in cryptocurrency values. Ron Biscardi, CEO of iConnections, highlighted that digital assets are increasingly being recognized as a core component of alternative investments.
Biscardi, who has over 25 years of experience in the alternative investment sector and oversees a platform managing more than $55 trillion in assets, noted that the atmosphere at this year’s conference reflects a more stable outlook compared to previous years marked by volatility. Following the significant downturn in the crypto market after the FTX collapse in 2022, interest began to rebound at last year’s event, with allocators expressing a renewed willingness to engage with digital assets.
“In 2025, we started to see funds wanting to come back, wanting to spend some money,” Biscardi stated, attributing part of this optimism to a more favorable regulatory environment emerging in Washington, albeit slowly. He characterized the current mood at the event as balanced, stating, “It’s not extremely crazy, but it’s also not ‘I don’t want to go anywhere near it.’”
This year, over 75 digital asset funds participated, resulting in approximately 750 meetings between fund managers and allocators. This level of engagement mirrors the enthusiasm observed in 2022, prior to the market downturn. Notably, nearly 25% of limited partners on the iConnections platform expressed interest in digital asset strategies, indicating that cryptocurrencies are becoming an established segment within alternative investments.
Family offices, which have historically been inclined to support innovative asset classes, constituted the largest group of interested limited partners. While some family offices remain cautious, many traditional wealth managers are feeling pressure to incorporate digital assets into their offerings, particularly in financial hubs such as Dubai, Switzerland, and Singapore.
Despite the current downturn in the cryptocurrency market, with Bitcoin’s value dropping nearly 25% since the start of the year and its market capitalization losing over a trillion dollars since its peak in October, interest in digital assets persists. Stocks of major cryptocurrency firms, such as Coinbase and MicroStrategy, have also seen significant declines, underperforming compared to other technology stocks.
Biscardi expressed confidence that digital asset managers are nearing institutional legitimacy, noting that Bitcoin has already achieved this status, while altcoins are progressing towards it. He emphasized that the remaining challenge lies in establishing a regulatory framework that allows for safe investment practices.
“The regulatory hurdles are number one,” he stated, underscoring the fiduciary responsibilities that large allocators face. They must ensure that any investment decisions can be justified to their boards as responsible and secure.
The tone of discussions around cryptocurrencies has evolved since 2022, when skepticism about their legitimacy was prevalent. Biscardi remarked, “That I don’t hear any of that anymore.” Some traditionally conservative investment pools, such as endowments, have begun to allocate funds to Bitcoin and Ether exchange-traded funds, aiming to enhance returns without overhauling their portfolios.
Allocators currently view Bitcoin primarily as a risk asset rather than a stable store of value, as its price movements have shown a correlation with equities rather than traditional safe havens like gold during market downturns. Direct purchases of tokens by institutions remain limited, with a preference for exchange-traded funds and fund structures where general partners select specific cryptocurrencies.
In contrast, there has been a noticeable increase in crypto companies investing in promotional activities to raise awareness of their products. Biscardi reported a significant rise in sponsorships at this year’s conference, with firms such as BitGo, Galaxy Digital, Ripple, and Blockstream securing prominent sponsorship roles.
The iConnections conference in Miami revealed a renewed institutional interest in digital assets, despite ongoing market challenges. Allocators are increasingly viewing cryptocurrencies as a legitimate component of alternative investments, with family offices leading the charge in engagement.