The Scoop: Fund managers are ready to deploy

This column was co-written by Frank Chaparro, director of special projects at The Block, and Laura Vidiella, Head of Crypto Investor Relations for VanEck. The views expressed in this column are their own and do not reflect the opinions of their employers.

We can say with some optimism: those three famous words—we’re so back.

The winds of change appear to be shifting in a favorable direction. Trump has issued a crypto executive order aimed at paving the way for U.S. digital assets, Ross Ulbricht is free , and over the weekend in D.C., crypto had representation at nearly every major event.

Welcome to the era of Digital Financial Technology.

Since the November elections, capital allocators have started re-engaging with fund managers across various strategies, with a noticeable focus on U.S. liquid strategies. Historically, allocators have shown more comfort with venture funds, given their distinct regulatory environment. Now, with a more crypto-friendly administration, while it might not signal a complete transformation, there are certainly more opportunities emerging.

Family offices, high-net-worth individuals, and fund-of-funds continue to play key roles in the allocation landscape. At the same time, pensions, endowments, and foundations are increasingly paying attention and re-entering the conversation. It’s worth noting that many of these institutions have long had at least one digital asset advocate tracking the space.

Crypto Insights Group recently launched a platform to connect allocators with fund managers and published their 2025 Liquid Fund Outlook Report, providing detailed insights into investor expectations for the year ahead.

We’ve featured insights from CIG before, but this time it’s particularly interesting to see fund managers’ perspectives on what lies ahead in 2025. According to their report, nearly half of surveyed managers anticipate significant capital inflows starting this quarter.

In my view, the second quarter seems like a more realistic timeline, as conversations and due diligence naturally require time to unfold. The timing largely depends on factors such as the type of allocator, the fund's tenure and track record, and its strategy. That said, the top-performing allocators remain the fastest movers, thanks to their inherent flexibility.

We also can’t ignore Solana’s standout moment this weekend, driven by the attention it garnered through the launch of the $TRUMP memecoin . Reports indicate that nearly 50% of newly created wallets interacted with Solana for the first time. While Solana seemed like the obvious choice for several reasons, this raises encouraging questions about the chain's growth and regulatory trajectory in the year ahead.

According to Crypto Insights Group’s 2025 outlook, nearly 40% of liquid fund managers are most focused on Solana, far ahead of any other chain. Key factors driving this interest include the Firedancer upgrade—which aims to address congestion issues like those seen during the $MELANIA memecoin launch —its alignment with AI narratives, and its positioning as a foundational platform for both retail and institutional participants.

The AI narrativ e has quickly become a dominant theme in the opening weeks of 2025, particularly at institutional and allocator events. Chris Solarz, CIO of the prominent fund-of-funds Amitis Capital, met with over 300 fund managers in 2024. One of the key takeaways from these conversations is the increasing relevance of AI in 2025.

“The Artificial Intelligence narrative will likely dominate crypto in 2025, with key themes including AI agents, decentralized infrastructure, and memecoins,” he states in Crypto Insights Group’s report.

Finally, looking at the crypto executive order signed by Trump , it establishes a working group to develop a new regulatory framework for digital assets and explore the potential creation of a national cryptocurrency stockpile. The announcement sparked exaggerated excitement on crypto Twitter, with some mistakenly claiming it included the establishment of a strategic Bitcoin reserve fund. Let’s not get ahead of ourselves. As Aubrey Strobel pointed out, the executive order specifies the “potential creation and maintenance (…) derived from cryptocurrencies lawfully seized by the Federal Government.”

Still, regardless of the specifics, this represents a positive step for the industry. While the regulatory landscape over the next six to 12 months remains uncertain, the administration’s commitment to engaging with these issues is clear. Fund managers, in turn, are optimistic about what 2025 could hold for crypto as they work to anticipate key trends and shifts.