Markets in Focus


Q4 2023

Markets in Focus  |  Cryptocurrency  | Digital Risk Q4 2023

The Digital Risk industry, which includes blockchain, web3, DeFi, and digital assets, experienced another volatile year in 2023. Notable players in the space, such as FTX and Silvergate Bank, suffered headline-grabbing collapses and brought the digital asset marketplace down with them. And, while these events caused turmoil in the crypto market cap and venture capital investment in the space, we end the year on the positive news of a much-anticipated Bitcoin ETF and possible regulatory clarity from the SEC in the coming year.

The insurance market continues to be challenging for digital risk companies to navigate. As the space matures and claims materialize, underwriters cautiously manage their capacity and exposure to contagion events. While there have been new entrants to the marketplace, there have also been carriers that have closed capacity for digital asset and blockchain industry companies. The result is a continued need for more diversity in options, and pricing remains elevated compared to other industries.

As we look to 2024, digital risk companies should continue to take aggressive steps toward managing their on-chain risks and transferring their off-chain risks where possible. We expect the insurance market to continue to mature and offer additional capacity, as well as see new coverage options emerge from existing carriers and new entrants.

This edition covers:

+ 2023 Year in Review

+ Impactful Industry Events

+ BTC Mining

+ Blockchain + Web3

+ DeFi + CeFi

+ Metaverse + Gaming