It's true that many institutions were advised to enter crypto VC in 21 for the reasons mentioned, leading to the crypto VC bubble. However, let me describe our experience on the liquid front: During the 22 crisis, none of the institutions redeemed their investments; in fact, some doubled down, and 5 additional Swiss pension funds were onboarded post-FTX. Speaking to pension funds, I’ll explain why this happened: Rational and well-guided investors size their liquid crypto allocation in line with the desired volatility contribution to their overall portfolio. The position is typically small (between 0.5% and 2% for a pension fund) and treated as an option. When the position corrects heavily (e.g. in 22), the option is OTM, the volatility contribution to the portfolio is minimal, and, in the words of a pension fund, they never sell an OTM option linked to a high-volatility space. When the option is deep ITM, the volatility contribution becomes untenable. In summary the way they’ve behaved since 2018: they hold (some buy) low and sell high!