Hi,

Yes Hraban it works outside in normal text flow. When I do e.g. {\InitialCapFont test in normal text flow} the text 'test in normal text flow' is rendered correctly in the Antykwa-Poltawskiego font.

Found out that the following does work with the \placeinitial command:

\setupinitial[color=MyColor,distance=6pt,n=3,font=name:antpoltcondregular*default sa 4]