Navigating Crypto Markets: The Importance of Investor Relations and Market Maturity

Welcome to our institutional newsletter, Crypto Long & Short. This week, we delve into the world of token markets and the crucial role of investor relations. Jordan Brewer, investment analyst at Runa Digital Assets, highlights the missing piece in token markets: institutional-grade investor relations. He emphasizes that providing regular investor calls with forward guidance is essential for building trust and credibility with investors. Brewer cites examples of companies like Maple Finance and EtherFi, which have successfully implemented this approach, resulting in improved token valuations. Meanwhile, Martin Burgherr, chief clients officer at Sygnum Bank, discusses the shift in how institutional capital moves through crypto markets, with a focus on separating custody from execution. This change signals a broader evolution in digital asset market structure, allowing for more efficient use of capital and reduced counterparty risk. Burgherr notes that firms like Wintermute and Nomura's digital asset arm Laser Digital are already adopting this approach, using collateral held in regulated bank custody while maintaining access to exchange liquidity. The infrastructure is being built by institutions, enabling collateral to take different forms, such as U.S. Treasuries or tokenized money market fund shares, which can generate returns while backing trading activity. This development is expected to fundamentally change the economics of running an institutional crypto trading operation. As the crypto market continues to mature, it is following a familiar pattern, with traditional finance solving similar problems in the past. The separation of custody and execution is crucial for institutional participation at scale. According to EY-Parthenon's 2026 institutional investor survey, 73% of institutional investors plan to increase their digital asset allocations this year, with respondents becoming more selective about counterparty risk. The infrastructure is scaling to meet this demand, with the migration already underway.