Institutional Investors Return to Crypto as Regulation Remains Key

Despite market volatility, allocators see digital assets as a core alternative investment

Published on Mar. 2, 2026

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After a challenging period following the 2022 crypto market crash, institutional interest in digital assets is rebounding. Allocators at the recent iConnections conference in Miami signaled that crypto is now considered a core component of alternative investment portfolios, with family offices leading the charge. However, the lack of clear regulatory framework remains the primary obstacle to wider adoption.

Why it matters

The return of institutional investors to the crypto market signals growing acceptance of digital assets as a legitimate investment class. This shift could help drive further mainstream adoption and innovation in the space, but regulatory clarity is crucial for allocators to commit capital responsibly.

The details

Data from iConnections, which represents over $55 trillion in assets, reveals that nearly a quarter of limited partners on their platform now express interest in digital asset strategies. This indicates a move from crypto being viewed as a fringe allocation to becoming an established 'sleeve' within alternative investments. Family offices are at the forefront of this renewed interest, with some wealth managers facing increasing pressure from clients to offer digital asset investment options. Endowments are also beginning to explore allocations to Bitcoin and Ether ETFs, aiming for measured exposure to potentially lift returns.

  • The recent iConnections conference in Miami saw participation from over 75 digital asset funds, facilitating approximately 750 meetings between fund managers and potential investors.
  • In 2025, iConnections CEO Ron Biscardi noted a stabilization of interest, with funds beginning to re-engage and allocate capital.

The players

Ron Biscardi

CEO of iConnections, which represents over $55 trillion in assets.

Bitcoin

The leading cryptocurrency, which has already crossed the threshold of institutional legitimacy according to Biscardi.

Ether

The second-largest cryptocurrency, which endowments are beginning to explore allocations to through ETFs.

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What they’re saying

“The regulatory hurdles are number one. It just always goes back to that.”

— Ron Biscardi, CEO, iConnections (iConnections conference)

“Digital asset managers are 'very, very close to achieving institutional legitimacy,' with Bitcoin already having crossed that threshold.”

— Ron Biscardi, CEO, iConnections (iConnections conference)

What’s next

Allocators, acting as fiduciaries, require assurance that digital asset investments can be made responsibly and safely before committing capital. The development of a clear regulatory framework is seen as the key next step to drive wider institutional adoption.

The takeaway

The return of institutional investors to the crypto market signals a shift in sentiment, with digital assets moving from a fringe allocation to a core component of alternative investment portfolios. However, the lack of regulatory clarity remains the primary obstacle to wider adoption, as allocators demand assurance that investments can be made responsibly and safely.