Bitget Chief Executive Gracy Chen said the cryptocurrency industry is temporarily losing investor attention to faster-growing sectors such as artificial intelligence and space technology, as several major crypto firms delay plans to go public.
In a post on X, Chen argued that crypto’s recent struggles are not primarily the result of weak market conditions but of increased competition for institutional capital. She pointed to a series of postponed public listings across the industry, including plans involving Kraken, Ledger, Consensys, and Grayscale, while high-profile AI and space companies continue attracting significant investor interest.
“2026 was supposed to be a crypto’s public listing era. However, Kraken paused its IPO. Ledger paused. Consensys paused. Grayscale paused. Meanwhile Anthropic is going public at $965B. SpaceX is pricing at $1.77T and listing tmr. Institutional investors don’t have infinite allocation. They made a choice this year. Crypto didn’t lose to bad conditions. It lost to a better story.”
Chen’s comments reflect a broader debate within the digital asset industry over whether blockchain companies can compete for investor capital and market attention as enthusiasm grows around artificial intelligence and other emerging technologies.
Why crypto faced a narrative challenge
The cryptocurrency industry saw some signs of further growth in various areas at the beginning of 2026. The development of layer-2 solutions took place, the use of stablecoins spread, and tokenization of real-world assets also started to get noticed by financial institutions.
Nevertheless, one cannot say that the industry was able to inspire investors as much as in previous cycles. Cryptocurrency is perceived as highly volatile and used for speculative transactions, while meme tokens are often regarded as a distraction from technological advancement.
On the other hand, both artificial intelligence and space startups became increasingly popular among investors. Proponents of the fields mention practical use of technologies, products on the market, and high-profile projects as key factors.
Chen has repeatedly argued that blockchain technology remains in the early stages of adoption and could play a larger role in future financial systems. Her comments suggest that the industry’s challenge may be less about technological progress and more about convincing investors of its long-term value.
The silver lining: Institutional interest remains strong
Despite the slowdown in public listings for Web3 corporations, underlying institutional interest in the underlying assets remains highly robust. A 2025 survey found that 96% of institutional investors still view blockchain as having long-term value. Bitcoin exchange-traded funds held about $120 billion in assets under management by December.
Gracy Chen said digital assets have moved beyond being a niche investment, with wealth managers increasingly adding regulated crypto products alongside traditional holdings. That shift has helped push digital assets further into mainstream portfolio strategies.
The company itself has expanded into stablecoins, tokenized real-world assets, and institutional services. Its wallet division has also explored stablecoin payments in Japan through discussions with payments firm Netstars.
While blockchain firms face short-term hurdles in matching the narrative velocity of deep tech, the long-term case remains tied to building borderless, programmable financial systems. As the industry navigates this allocation squeeze, the entities prioritizing transparent operations and cross-utility infrastructure are the ones positioned to survive the capital drought.
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