In a recent interview with Zawya, Binance CEO Richard Teng expressed his views on the significance of the US Securities and Exchange Commission’s (SEC) approval of the first spot Bitcoin exchange-traded funds (ETFs) on Wednesday. Teng highlighted that this development marks a new era of acceptance, maturity, and mainstreaming for the cryptocurrency market.
Replacing Changpeng Zhao as Binance’s CEO in November, Teng sees the SEC’s approval as a catalyst for the expansion of crypto competencies within financial institutions. He stated, “The SEC’s approval of Bitcoin ETFs is likely to fuel the expansion of crypto competencies within financial institutions. This expectation is in line with the growing adoption of cryptocurrencies and blockchain technology across the financial sector.”
Teng emphasized that the increased acceptance and mainstreaming of the crypto market are poised to create a demand for skilled professionals in areas such as blockchain, cryptocurrency trading, and regulatory compliance. Binance anticipates a broader trend where traditional financial institutions recognize the significance of digital assets and blockchain technology, leading to an increased integration of crypto-related roles within these institutions.
“This development is a testament to the regulatory progress in this field and adds credibility to the industry, making it more attractive to both institutional and retail investors,” Teng added.
Highlighting the potential impact of Bitcoin ETFs, Teng stated that they would provide more straightforward access, appealing to a diverse range of investors and enhancing liquidity. Drawing a parallel with the positive price action triggered by gold ETFs in 2004, he noted that this holds especially true in light of the Bitcoin Halving event this year, during which Bitcoin reduces the amount of coins that can be earned by miners.
Teng described the SEC’s approval as a milestone that could inspire further innovation in the crypto sector, encouraging financial institutions and investment firms to explore a diverse range of crypto-related products beyond ETFs. He believes that such moves foster trust in the market among a wider audience.
Looking ahead, Teng expressed Binance’s anticipation of upcoming milestones, including the SEC’s decision on Ether (ETH) ETFs, expected to be announced in May. Additionally, he mentioned the potential interest of traditional finance in custodying digital assets as a development to watch closely.
As mainstream financial institutions expand their ventures into crypto and blockchain, experts predict that the work initiated in these areas is expected to come to fruition in 2024. Singapore-based AsiaNext has also entered the scene, announcing the launch of crypto derivatives trading, a move it described as a “crucial development” for institutional investors.
