Locators and Allocators: Why Institutional Investors Are Starting to Focus on Bitcoin

Professionals at the forefront of asset allocation are increasingly sensing a shift in the attitude toward digital assets. Ron Biscardi, CEO of iConnections, with over 25 years of industry experience, perceives this change as more than just rumors—it’s backed by data. “Locators” refer to institutional investors who decide on allocations across different asset classes. Their interest is shifting from “avoiding” to “considering” digital assets.

Institutional Money Flows into Digital Assets from the Locator Perspective

In the allocator world, sentiment changes directly influence investment decisions. Biscardi’s platform tracks thousands of meetings annually between fund managers and investment institutions. The data shows that after the market turmoil following the 2022 FTX collapse, investor sentiment has rapidly stabilized since last year.

He notices clear changes on the ground. “You hear more voices saying, ‘We want to deploy capital, we want to return to the market.’” This trend isn’t just a market recovery; it indicates that locators are seriously reconsidering the crypto asset category. In 2026, over 75 digital asset funds participated in events, with about 750 meetings held. This matches the level of interest seen before the FTX collapse in 2022.

Approximately one-quarter of limited partners (LPs) on the platform are interested in digital asset strategies, signaling that cryptocurrencies are no longer peripheral allocations but established sub-asset classes. Particularly, family offices—known for investing in emerging and innovative asset classes—are showing the strongest interest.

Regulatory Framework: The Final Barrier for Locators—Institutional Investors’ Decision Factors

Bitcoin is currently trading at $70,310, up 2.03% in 24 hours. While prices seem to be recovering, Biscardi points out that the real challenge isn’t price volatility but gaining regulatory legitimacy. He states that Bitcoin has already crossed this threshold, but altcoins are only approaching it.

What locators need most now is a “regulatory framework that enables safe execution.” For chief investment officers, this regulatory challenge is a top priority. “They always come back to it,” Biscardi emphasizes.

Large institutional investors are inherently receptive. They act as trustees for others’ funds, not their own. Even if a category is highly interesting, they won’t make substantial allocations until they can demonstrate to their boards that they are executing safely. This cautious approach is key to understanding locator behavior.

Investment Approaches Chosen by Allocators: ETFs and Delegated Portfolios

Even traditionally cautious capital is beginning to move. Foundations, which prioritize long-term stability and avoid sharp fluctuations, are starting to invest in Bitcoin and Ethereum ETFs. However, their approach remains conservative. The goal isn’t to overhaul their entire portfolio but to add limited exposure that could boost returns during favorable crypto market phases.

Given that many investors expect stock market returns to be more subdued over the next decade, this strategic allocation makes sense. Yet, allocators tend to treat Bitcoin more as a “risk asset” than a store of value. As Biscardi notes, Bitcoin often correlates with stocks during market stress, rather than acting as a safe haven like gold.

Direct purchase of individual tokens by institutional investors remains rare. Instead, they mostly discuss investing through ETFs or fund structures. Limited partners delegate specific asset selections to general partners (GPs). “LPs investing in digital assets tend to leave the decision-making to GPs,” Biscardi explains.

Market Sentiment Shift: Locators Watch the Institutionalization of Crypto

In 2022, some investors questioned the very nature of cryptocurrencies—wondering if they were Ponzi schemes. Today, such fundamental doubts have largely disappeared. The tone of conversations has fundamentally changed.

It’s no longer rare to see crypto firms investing in raising awareness of their products and services. Major companies like BitGo, Galaxy Digital, Ripple, and Blockstream participated as top sponsors at recent events, with sponsorship numbers increasing significantly. This trend indicates that the industry is genuinely committed to investor education and building trust.

Locators are ultimately those who judge “what is safe and what fulfills fiduciary responsibilities.” Their criteria are now increasingly focused on cryptocurrencies. Expectations of a regulatory turnaround in Washington are also supporting this flow. The institutionalization of digital assets is no longer just about speculation; it’s becoming an innovation space where mainstream finance participates.