💰 [Analysis] How to think about crypto investing, for institutional investors – Scott Kupor

Institutional investors should think about investing in crypto assets the same way they think about asset class diversification across listed and private assets. For institutional managers, there should be little difference between how they invest in other domain-specific subsets of VC such as life sciences and how they invest in crypto. They should first figure out their allocations to venture more generally, and then decide whether they want exposure to crypto as a subset of that VC allocation. This is because buying listed cryptos make them ignore the developing private market, and it makes them belie the risks of investing in liquid assets without the full set of information available to active managers in the crypto space.