Institutional Interest in Digital Assets Rebounds Despite Market Volatility

Despite a challenging year for cryptocurrency markets, with Bitcoin losing trillions in value, institutional interest in digital assets is showing signs of resurgence. Allocators signaled at the iConnections conference in Miami this week that digital assets are now considered a core component of alternative investment portfolios, led primarily by family offices.

A Shift in Sentiment

The mood surrounding digital assets has demonstrably shifted, according to Ron Biscardi, CEO of iConnections, a leading capital introduction conference platform. Biscardi, with over 25 years of experience in alternative investments and a platform representing more than $55 trillion in assets , notes a stabilization of interest after the market downturn following the FTX collapse in 2022. “[In 2025] we started to see funds wanting to come back, wanting to spend some money,” he said.

Conference Activity Signals Renewed Engagement

This year’s iConnections conference hosted over 75 digital asset funds and facilitated approximately 750 meetings between fund managers and allocators, a level comparable to the peak interest seen in 2022 before the FTX collapse . Nearly a quarter of limited partners on the iConnections platform now express interest in digital asset strategies, indicating a move towards mainstream acceptance within alternative investments .

Family Offices Lead the Charge

Family offices are at the forefront of this renewed interest, consistent with their history of backing innovative asset classes. Whereas some family offices remain cautious, traditional wealth managers are facing increasing pressure to offer digital asset exposure to their clients, particularly in financial hubs like Dubai, Switzerland, and Singapore.

Bitcoin’s Institutional Legitimacy and Altcoin Challenges

Biscardi believes Bitcoin has largely achieved institutional legitimacy, but broader adoption of altcoins remains constrained by regulatory uncertainty. “The last piece is really the regulatory framework that lets them do it safely,” he stated . Regulatory hurdles are the primary concern for chief investment officers, who require a clear and safe framework before allocating capital.

Changing Perceptions and Emerging Allocators

The perception of digital assets has evolved significantly. Concerns about crypto being a Ponzi scheme have largely dissipated. Traditionally conservative investors, such as endowments, are beginning to allocate to Bitcoin and Ether exchange-traded funds (ETFs) to potentially enhance returns, particularly given expectations of more moderate equity gains in the future.

Digital Assets as a Risk Asset

Allocators generally view Bitcoin as a risk asset rather than a store of value, noting its correlation with equities during market stress. Direct token purchases by institutions remain uncommon, with a preference for ETFs and fund structures that allow general partners to make specific coin selections.

Increased Sponsorship at Industry Events

The level of sponsorship from crypto companies at industry events, such as iConnections, has increased substantially, with companies like BitGo, Galaxy Digital, Ripple, and Blockstream securing top-tier sponsor status .

Ron Biscardi: A Key Figure in Alternative Investments

Ron Biscardi is the Co-Founder and CEO of iConnections, recognized as a central figure in the global alternative investment industry . He launched iConnections in 2020, creating an institutional investment platform representing over $55 trillion in assets under management . In 2026, he also launched Funds4Charity, an initiative to bring capital introduction to philanthropic causes .