- Binance CEO Richard Teng announced a 40% increase in institutional and corporate investors this year, driven by the launch of spot Bitcoin ETFs in January 2024.
- This surge reflects broader market trends, with regulatory developments and growing interest from major financial firms fueling the crypto market’s growth.
Binance, one of the world’s largest cryptocurrency exchanges, has experienced a remarkable 40% increase in institutional and corporate investor onboarding this year. This surge, according to CEO Richard Teng, is closely tied to the launch of spot Bitcoin ETFs in January 2024. Speaking at the Token2049 conference in Singapore, Teng highlighted the significant uptick in interest from institutional investors, signaling a broader trend in the crypto market’s evolution.
Binance CEO’s Insights on Institutional Growth
“Allocation into crypto by institutions is just at the tip of the iceberg. It’s just beginning, because a lot of them are still doing their due diligence,” Teng noted in a CNBC report. This statement underscores the nascent stage of institutional involvement in the cryptocurrency sector, suggesting substantial growth potential as more institutions complete their due diligence processes.
The surge in institutional interest coincides with key regulatory developments in the U.S. Earlier this year, U.S. regulators approved the first set of Bitcoin ETFs, providing a new and more accessible entry point for institutional investors. The regulatory green light extended further in July with the approval of similar ETFs for Ethereum, the second-largest cryptocurrency by market cap. Teng emphasized the transformative impact of these regulatory changes on institutional investment patterns.
Outlook for the Crypto Market
Teng’s remarks at the conference indicated that Binance’s growth reflects broader market trends. “The effect of institutions coming through” has been a significant driver of Bitcoin’s recent price performance, Teng said, referencing Bitcoin’s record high of $73,800 in March. He also mentioned the influence of prominent financial figures who have recently warmed up to cryptocurrencies. BlackRock CEO Larry Fink, previously a Bitcoin skeptic, now refers to it as “digital gold,” highlighting a shift in perception among traditional finance leaders.
Additionally, other major Wall Street firms, including Franklin Templeton, have launched ETFs for both Bitcoin and Ethereum. Franklin Templeton CEO Jenny Johnson pointed to early adopters as key to Bitcoin’s initial growth, while expressing confidence in a forthcoming wave of interest from larger institutional players. “The first wave of the early adopters” has been pivotal, Johnson said, adding that she expects “much bigger institutions” to follow.
As of Thursday, September 19, Bitcoin’s price surged to $63,400. Although Teng refrained from providing a specific price forecast, he noted that crypto markets typically “warm up” around 160 days after a technical event known as “Halving.” The last Halving occurred in April, putting the market just days away from that crucial 160-day mark.
The 40% rise in institutional clients at Binance, fueled by the launch of Bitcoin ETFs and regulatory advancements, marks a significant milestone in the cryptocurrency market’s journey toward mainstream acceptance. As more institutional investors join the fray, the crypto market is poised for further growth, underscoring the evolving landscape of digital assets.
