Binance, the world’s largest crypto exchanges, has seen a significant increase in institutional and corporate investors on its platform, according to CEO Richard Teng. Speaking at the Token2049 conference in Singapore, Teng revealed that crypto exchange experienced a 40% rise in institutional and corporate investor onboarding this year. Moreover, it’s important to note that this surge is closely tied to the launch of spot Bitcoin ETFs in January 2024.
Binance CEO’s Statement On Surge Institutional Clients
“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 said, according to a CNBC report.
The surge in institutional interest comes as the crypto market has begun to attract more mainstream investors, following recent regulatory developments in the U.S. Earlier this year, U.S. regulators approved the first set of Bitcoin ETFs. This provided a new entry point for institutional investors.
Thereafter, in July, the U.S. also allowed trading of similar ETFs for Ethereum, the second-largest crypto by market cap. Teng emphasized the impact of these regulatory changes on the institutional market.
“So we on our own, we are seeing a huge uptick in terms of institutional and corporate investors. We have seen a 40% increase in onboarding in that category throughout the course of this year alone,” he said. However, Teng did not disclose specific firms or provide details on the size of the investors joining the platform.
Outlook for Crypto Market
Advertisement
Teng noted that the company’s growth is indicative of broader trends in the market. “The effect of institutions coming through” has been a key driver of bitcoin’s recent price performance, Teng said, referring to BTC’s record high of $73,800 in March.
The Binance CEO also referenced prominent figures in the financial sector who have changed their stance on cryptocurrencies. BlackRock CEO Larry Fink, once a skeptic of Bitcoin, has recently referred to it as “digital gold.”
In addition to BlackRock, other major Wall Street firms such as Franklin Templeton have issued ETFs for both Bitcoin and Ethereum. Franklin Templeton CEO Jenny Johnson highlighted the role of early adopters in driving the initial growth of BTC.
However, she also expressed confidence in a second wave of interest from larger institutional investors. “The first wave of the early adopters” has been key to bitcoin’s gains so far, Johnson said in a previous interview. At the time, she also added that she expects “much bigger institutions” to follow.
Bitcoin price surged to $63,400 as of writing on Thursday, September 19. Meanwhile, Teng declined to provide a specific price forecast but pointed out that crypto markets typically “warm up” around 160 days after Bitcoin undergoes a technical event called “Halving.” The last Halving occurred in April, now the market is “nine days away from that 160 days,” according to Teng.
Advertisement
Also Read: Crypto Market Rallies Higher As BofA Predicts 0.75% Fed Rate Cut In Q4
