- Institutional investors are bringing capital and serious energy to the cryptocurrency conference circuit.
- The emergence of Bitcoin ETFs is driving demand for cryptocurrency conferences targeting professional money managers.
- Get ready to juggle asset managers and 'distributors'.
In February, Robert Mitchnick, BlackRock's global head of cryptocurrencies, took to the stage at the investment giant's inaugural Digital Asset Summit in New York.
There were no fluorescent Lamborghinis to be seen, and Larry Fink, CEO of Mitchnick and BlackRock, did not host a luxury yacht party.
Without the interface, it was all rather uncoding. But one thing about BlackRock's Manhattan headquarters was very important — the attendees represented vast amounts of wealth.
As it happens, they are now showing up at conferences like this where they are turning their sights to Bitcoin and its ilk.
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Cryptocurrency conference is changing. With the rise of Bitcoin ETFs and the interest of hedge fund giants like Cliff Asness, crypto insiders will have to make room for a group they may not have expected to break bread with – Wall Street.
Market dynamics
At BlackRock's dance party, attendees were keen on portfolio allocation, Bitcoin returns, and risk-reward ratios.
Speakers such as Dan Moorhead, founder of Pantera Capital, and Brett Tegebaul, head of institutional sales, trading and services at Coinbase, shared thinking about market dynamics.
Although there's no doubt that cryptocurrency investors will be in a giddy mood the next time they gather in Miami and elsewhere, investment professionals are adding a more serious and sober atmosphere to the conference circuit.
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“I would definitely avoid festive conferences because realistically there are no institutional investors, it's almost all retail,” said Anatoly Krachilov, CEO of cryptocurrency hedge fund Nickel Digital Asset Management and a former Goldman Sachs and JPMorgan Chase executive. .
“If anything, I want to take this industry away from unnecessary glamour,” he said. “Instead, let's talk about portfolio construction, risk limits, and appropriate allocation within a larger portfolio. That's what I'm interested in.”
Cryptocurrency events are of great importance in this sector, partly due to the unusually large number of participants working remotely.
Large gatherings provide a rare opportunity to connect and talk with people in person, often attracting tens of thousands of attendees. As a result, conferences have become more than just gatherings – they are also barometers of the mood in the market.
Last year was a mixed bag for conference organizers, as the bear market hurt company budgets and caused a decline in event spending across large swaths of the sector.
Mass market appeal
CoinDesk reported that Bitcoin Miami saw attendance halved to around 15,000 people. Meanwhile, attendance at NFT.NYC, a New York-based non-fungible token miner, fell by nearly two-thirds, to 6,000.
As the market rose, the atmosphere changed. The biggest difference may be how the cryptocurrency community accepts regulation as the necessary price to appeal to the mass market.
Regulators in the UK and EU are adopting regulations to clarify the dos and don'ts of cryptocurrency companies.
Ironically, it was the US Securities and Exchange Commission, the scourge of the industry, that helped start the current boom by approving spot bitcoin ETFs for BlackRock, Fidelity, and nine other issuers in January. Ethereum ETFs could be next.
Now events — and the corporate sponsorship budgets that fund them — are starting to rebound, too.
“In 2023, people have been very cautious, but we are seeing more companies that want to go out and market themselves more loudly.”
— Emma Joyce, World Blockchain Business Council
Cal Evans, associate director at cryptocurrency law and compliance consultancy Gresham International, said his company increased its marketing budget by 25% in 2024 compared to the previous year. The money goes toward event sponsorships and digital advertising.
Emma Joyce, head of financial services at the World Blockchain Business Council, a Europe-focused industry group, said the organization organized 132 conferences, roundtables, webinars and dinners in 2023. This year, that number is expected to rise by about 10%.
“In 2023, people have been very cautious, but we are seeing more companies that want to go out and market themselves louder,” she said. “Companies are still being rational, but there is definitely more room to spend across the industry.”
Simon Barnby, chief marketing officer at Archax, a digital assets firm backed by money management giant Abrdn, said the company is increasing its sponsorship budget by up to a third this year.
This is “partly because we have entered sales mode on our products, and partly because market conditions have improved. It makes us feel confident to spend more on events.”
He added that even in November, people were jostling for places at the main Token 2049 conference in Singapore, with hype growing around the expected SEC approval of Bitcoin ETFs.
together
But as Wall Street's influence over the industry grows, the recovery is coinciding with a growing appetite for more overt rallies targeting institutional investors like BlackRock.
Joyce moderated a blockchain panel in the European Parliament with speakers from the Bank of England, JPMorgan Chase and German stock exchange Deutsche Börse earlier this month.
“You need companies, policymakers and regulators to come together to define the future of the industry, and that's what good conferences can do,” Joyce said.
“I'm glad BlackRock launched its own summit. It couldn't have happened last cycle, but this is a great sign.
— Anatoly Krachilov, Nickel Digital Asset Management
Meanwhile, Krachilov cites TradeTech's DigiAssets conference, which targets asset managers and hedge funds, and the iConnections Global Alts conference in Miami, which matches asset managers with distributors, as key gatherings for him.
“If I'm traveling for two days, I want to have pre-agreed meetings with people who actually want to discuss the same thing as me,” he said. “This is the most valuable.”
“I'm glad BlackRock launched its own summit. It wouldn't have done so last cycle, but this is a great sign. They're well-placed to bring investors together and have institutional quality conversations about cryptocurrencies.”
Alarm bells
Archax's Barnby agrees that for institutional players, the biggest and flashiest conferences have limited value. There is even a possibility of a clash with compliance departments in finance companies.
“A lot of these companies are highly regulated, so they have to be very careful about what they do and where they go,” he said.
“They don't want to be seen involved in trivial things, whereas if it were more focused and serious, it would be easier to go beyond compliance,” he continued.
“Sure, big events are a lot of fun. But they ring alarm bells in regulated establishments.
Alex Daniel Contributing writer to DL News.
