In a recent interview with The Block, Evan Cheng, CEO of Mysten Labs, shared his insights on the shifting dynamics of the crypto investment landscape.

Cheng, who co-founded Mysten Labs, the creator of the innovative Layer 1 blockchain Sui, believes that the recent slowdown in crypto investments following the hype-driven bull run will soon give way to a more strategic and cautious approach.

Cheng expressed optimism about the growing interest of traditional financial institutions in the crypto and blockchain space. He envisions a more mature and merit-based environment emerging as a result of this interest. 

He revealed ongoing conversations with investors in the Gulf region, such as the UAE and Qatar, and noted a strong desire among them to position themselves strategically in the crypto market.

Similar sentiments are echoing across the Asia-Pacific (APAC) region, where there is a surge of interest in crypto investments.

Cheng emphasized that while money is expected to flow back into the digital currency market, investors will approach it with a much higher degree of caution and strategy. The days of the frenzied bull run are giving way to a more measured and thoughtful investment landscape.

With the crypto market maturing, investors are becoming discerning in their choices, focusing on projects and technologies that hold long-term promise.

Mysten Labs is known for its groundbreaking Layer 1 blockchain, Sui, which leverages the Move programming language. This language was first developed at Meta, where Cheng had previously worked. Cheng’s extensive experience, which includes over a decade at Apple, has given him a unique perspective on the convergence of traditional finance and the crypto space.

Markus Levin, the co-founder of XYO Network, also shared his insights on the evolving crypto landscape. Levin believes that the approval of a spot Bitcoin Exchange-Traded Fund (ETF) would be a game-changer for Bitcoin adoption, particularly among institutional investors.

Levin pointed out that the recent surge in Bitcoin’s price, triggered by a false report of a BTC spot ETF approval, highlights the immense anticipation among institutional investors. He firmly believes that once an ETF receives regulatory approval, a massive influx of capital will flood into the market, leading to a significant rally in Bitcoin’s price.

While Levin speculated that this green light might come early next year, he underscored that it is only a matter of time before a Bitcoin ETF becomes a reality.

The past year has been challenging for crypto startups, with venture investment in the sector significantly declining. In August, less than $500 million was invested, marking the lowest level in more than two years. This decline underscores the cautious approach of investors and the need for startups to demonstrate real value and innovation to secure funding.

The awaited approval of a BTC ETF promises to reshape the crypto market, drawing in institutional investors and driving further adoption. For crypto startups, this changing landscape presents both challenges and opportunities, as they must adapt to meet the new demands of the market.

Featured image from Wealth Factory

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