Marcos Veremis – Allocator’s Perspective on Blockchain (EP.254, Crypto for Institutions 2, EP.01)

Initial Skepticism

Marcos Veremis recounts the initial skepticism surrounding crypto investments among institutional investors. In 2018, only a small fraction of Cambridge clients showed interest in crypto, with just ten to twelve out of a thousand considering investments 1. However, as the years progressed, the landscape evolved with more institutions making multiple commitments, transitioning from brand names to crypto-native managers. Ted Seides highlights the shift in investment strategies, noting that crypto investments are now often positioned within venture capital allocations due to their volatility and early liquidity 2.

   

Increased Allocation

The growing interest in crypto from institutions is evident, with Marcos Veremis observing a significant increase in capital allocation. Initially, only a few institutions were willing to make small investments, but now larger checks are more common, reflecting the sector's rapid growth 1. Veremis explains that smaller funds often have an advantage due to their ability to achieve high ownership with smaller fund sizes, thus stacking the odds in their favor for successful outcomes 3. He emphasizes that while larger funds may have significant successes, the probability game in venture capital often favors smaller, more agile funds.