Institutional investors from traditional finance may struggle in the next crypto bear market due to outdated risk models, Custodia Bank CEO Caitlin Long warns. Legacy systems’ advantages disappear in real-time settlement, leading to liquidity crunches. Some fear overleveraged firms will trigger a market contagion. Industry experts echo concerns, highlighting settlement mechanism mismatches. Venture capital firm Breed predicts most Bitcoin treasury companies won’t survive the next downturn, warning of a vicious cycle of asset dumping and market depression.

Read more at Cointelegraph: Caitlin Long Warns New Institutions May Fold During Next Crypto Winter