€800B in Assets: Wealth Managers Question Crypto Token Yields

Institutional Scrutiny of Crypto Earnings

Representatives from institutions managing roughly €800 billion in assets convened for closed-door meetings to discuss the current state of digital asset investment. The meetings, spanning 48 hours, revealed a key concern among private bankers and wealth managers: a perceived gap between onchain activity and token price action.

Brendan Ma, Head of Investment Strategy at the Arbitrum Foundation, participated in the discussions. A central theme, according to Ma, was the difficulty in correlating business or ecosystem traction with actual fundamental value within the crypto sector. Participants repeatedly questioned how to accurately assess the earnings potential of various crypto tokens.

The focus suggests a growing demand for more rigorous valuation frameworks within institutional crypto investing. Previously, narratives around technology and adoption often drove capital flows. Now, a more traditional investment approach—centered on demonstrable returns—appears to be gaining traction. The conversations indicate a desire to move beyond speculative investment and toward strategies grounded in clear economic fundamentals.

The outcome of these discussions could influence future allocation strategies and potentially drive demand for projects that can clearly demonstrate sustainable revenue generation and profitability. Further details regarding specific tokens discussed were not immediately available.

Source: CryptoSlate