Conference Presentation, Panel
Bending the Curve: Innovation in Asset Management | Global Conference 2025
Milken InstituteLeon Kalvaria, Eric Anziani, Sandy Kaul, John Koudounis, Peter Mintzberg, Dan Morehead
- Real-world asset tokenization is expected to accelerate exponentially over the next 18 months, driven by a stable regulatory environment and increased technological understanding.
- The industry is projected to shift from account-based to wallet-based systems utilizing cryptographically protected wallets within the next five to ten years to enable enhanced risk management, 24/7 shareholder record calculations, and automated compliance.
- Private market retail allocation is anticipated to rise from single digits to potentially 10%–40% as investors adopt new instruments like interval funds.
- Bitcoin participation rates, currently at approximately 12% in the US and 4% globally, are expected to grow significantly through principle-protected products offering upside protection and limited downside risk.
- Bitcoin ETFs are projected to become recurring quarterly offerings designed to ladder products, allowing investors to flip positions and manage volatility while maintaining exposure.
- The wealth management segment is forecasted to enter the digital asset space rapidly, necessitating extensive infrastructure in sales, research, and marketing to serve client demands for diversified ETF exposure.
- Product development pace is projected to increase by approximately five initiatives this year to meet anticipated demand for diversified digital asset exposure.
- Wealth advisors who previously viewed digital assets as a career risk are expected to reverse their stance within the next few months, seeking education and research to incorporate these assets into portfolios.
- Every financial institution is predicted to establish a blockchain team with specific allocation benchmarks within 10 to 20 years, marking the transition of blockchain from an early-stage innovation to a standard asset class.
- Daily cryptocurrency users are targeted to grow from approximately 700 million to between two and three billion by broadening access to poorly banked populations and leveraging remittance value propositions.
- Online commerce is expected to be the first sector to see widespread crypto adoption for payments, driven by a snowball effect caused by lower fees compared to traditional rails.
- Stable coins are predicted to eventually replace banks for most deposit-taking activities and become the 12th largest holder of US Treasuries within 15 to 20 years, supported by a current market cap of nearly $200 billion.
- Regulations are anticipated to provide the necessary clarity for full institutional entry, acting as a permanent inflection point triggered by the current pro-crypto administration and election outcomes.
- Traditional 60-40 investment models may become less relevant as clients shift focus from participation decisions to specific allocation sizes of 5% or 10%.
- Blockchain venture investing returns are expected to occur faster than in traditional venture capital, with quicker distributions and capital recycling facilitating more rapid exits and unicorn creation.
- The industry anticipates a delicate regulatory balance where rules protect investors without stifling innovation across varying global landscapes.
- Regulatory clarity is viewed as an essential "insurance policy" required for major wirehouses and institutional firms to fully open up to Bitcoin-related products.
- Innovation is currently outpacing regulation, prompting a need to rethink regulatory frameworks to fit new innovations rather than forcing technology into old structures.
- The regulatory environment in the US is expected to determine whether entrepreneurs are driven away or attracted, with hopes for a swing back to US leadership similar to the internet boom.