Welcome to Crypto Long & Short, our institutional newsletter. This week, we delve into the missing piece in token markets: institutional-grade investor relations. Jordan Brewer, investment analyst at Runa Digital Assets, discusses how poor investor relations can lead to the downfall of even the most promising projects. He highlights the importance of regular investor calls, where management provides forward guidance, citing examples from Maple Finance and EtherFi.
Research shows that firms that consistently meet or beat their guidance enjoy a stock price premium, and this dynamic is beginning to emerge in crypto. Meanwhile, Martin Burgherr, chief clients officer at Sygnum Bank, explores the shift in how institutional capital moves through crypto markets, with major trading firms 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. As the infrastructure catches up, crypto is beginning to follow a familiar pattern, with traditional finance solving similar problems in the past.
With 73% of institutional investors planning to increase their digital asset allocations, the migration is already underway.