According to CoinDesk: The first law of thermodynamics, which states that energy can neither be created nor destroyed, only altered in form, can be applied to investing, particularly in the crypto market. As the various structural risks of crypto investing change over time, the opportunities for returns change as well. In the early days of bitcoin, there were many risks, such as existential risk and financial/funding risk. However, as these risks were reduced, the value of bitcoin increased, and new investors entered the market. In 2023, regulatory risk is the next major challenge for the crypto market, and as it is addressed, the landscape for digital investing will continue to transform. Offshore market makers, government lawsuits targeting altcoins, and rules around qualified custody are all factors that will affect the future of crypto investing. As the risks decrease, the potential for extraordinary financialization and institutional adoption increases. However, this transformation also creates an allocator's dilemma, where investing in the largest funds may not guarantee success. Currently, smaller, capacity-constrained funds have a unique opportunity to outperform, but this advantage will not last forever as the crypto investing landscape continues to evolve. Astute institutional investors should consider their stake in this moment of transition.