Digital assets have reached institutional scale, but many professional investors still lack clear implementation guidance. Risk assessment, regulatory positioning, and practical allocation strategies remain key concerns.
Our recent webinar with Anthony Bassili of Coinbase Asset Management and Daniel Coheur, our Global Head of Digital Assets, moderated by Kerem Kolcuoglu of Penrose Partners, addressed these challenges directly. The session provided frameworks that institutional allocators can put into practice.
Bitcoin leads digital assets into maturity
Bitcoin recently reached an all-time high of $124,000, creating over 90,000 millionaires worldwide. What began as peer-to-peer digital cash in 2008 has become a $2.3 trillion asset class that trades over $80 billion daily, challenging the largest ETFs and technology growth stocks like Nvidia and Tesla. Coinbase now services major investment managers including BlackRock and Franklin Templeton, demonstrating the institutional maturity this space has achieved.
The technology represents the third iteration of internet infrastructure, often described as the 'internet of money.' Anthony explained how this mirrors the internet's development:
"Just as the internet took 30 years to reach consumer adoption after ARPANET in 1970, blockchain technology is now reaching institutional maturity after 15 years of development."
Beyond Bitcoin: Ethereum, stablecoins, and more
Ethereum, valued at approximately $565 billion, introduced programmable smart contracts that automate financial functions traditionally handled by intermediaries. These smart contracts remove the dependency on central security depositories, enabling direct peer-to-peer settlement without trusted third parties. These contracts support a growing ecosystem of applications, from decentralised finance protocols to tokenised securities.
Stablecoins represent another breakthrough. With $250 billion in circulation and $27 trillion in annual turnover, their transaction volume now rivals major payment operators like Visa and MasterCard. Daniel noted how they remove the 4 p.m. cut-off limitations:
"Corporate treasurers can now invest in money market funds even for a few hours, operating continuously without traditional banking restrictions."
From regulatory uncertainty to 401K approval
The Trump administration recently signed an executive order encouraging 401K retirement plans to add actively managed digital assets funds to their offerings. In the United States, the Genius Act brings clarity to stablecoins, while Europe's MiCA regulation defines digital assets as distinct from traditional securities. Jurisdictions like Bermuda pioneered regulatory frameworks through the Digital Asset Business Act as early as 2018, providing templates for global adoption.
Daniel's team developed the ERC 3643 protocol specifically to address regulatory compliance for tokenised securities, ensuring transfer restrictions and compliance controls can be programmed into smart contracts.
"We needed regulatory clarity," said Daniel. "Large institutional investors could not invest in Bitcoin or stablecoins without clear definitions of what these assets represent within existing legal frameworks."
Performance that investors cannot ignore
Coinbase Asset Management reviewed multiple portfolio scenarios in their "Get off 0" research paper. A 5% allocation to Bitcoin in a traditional 60/40 portfolio would have added more than 500 basis points of annual return between 2017 and 2025, while reducing downside volatility. Similar results appeared across different strategies: a Coin 50 index approach added 400 basis points, as did a store of value index combining gold and Bitcoin, and a basket of digital asset-focused public equities.
Bitcoin has outperformed every major asset class over the past 13 years, including equities, infrastructure, and private markets. This performance has attracted attention at a time when traditional assets have become increasingly correlated since central bank interventions began in 2008.
Tokenisation removes traditional barriers
Looking ahead, traditional assets are being tokenised to operate on digital infrastructure. This technology enables automated capital calls, decentralised order books, and removes geographical, technological, and time zone barriers that limit traditional investing. Private equity, real estate, and credit instruments can all be represented as digital tokens while maintaining regulatory compliance.
“This is an infrastructure upgrade,” explained Daniel. "We are opening up the world to investors, removing the geographical border, removing the technology border, removing the time border."
This enables access to previously unavailable investment opportunities and the creation of new types of synthetic products.
New ways to access digital assets
Investors now have multiple routes to participate. Spot ETFs trade on major exchanges, private funds provide active management, and direct custody solutions offer institutional-grade security. Coinbase launched the first perpetual futures contracts in the United States two weeks prior to the webinar, expanding the available instruments for institutional trading.
The Apex Invest platform provides educational resources and access to institutional-grade managers such as Coinbase Asset Management, bridging traditional finance with this fast-growing asset class.
Watch the webinar on demand
Watch the full recording to explore these topics in detail, with insights from industry leaders on practical approaches to digital asset investment.
