Binance CEO: Institutional Investors Flood In, Crypto Market "Just Beginning"

Binance CEO: Institutional Investors Flood In, Crypto Market "Just Beginning"Richard Teng, CEO of cryptocurrency exchange Binance, said Wednesday (September 18) in an interview that institutional and corporate investors joining the platform have increased by 40% this year. Teng succeeded Changpeng Zhao as Binance CEO in November 2023

Binance CEO: Institutional Investors Flood In, Crypto Market "Just Beginning"

Richard Teng, CEO of cryptocurrency exchange Binance, said Wednesday (September 18) in an interview that institutional and corporate investors joining the platform have increased by 40% this year. Teng succeeded Changpeng Zhao as Binance CEO in November 2023. He said on the sidelines of the Token2049 conference in Singapore, "Institutional allocation to crypto is just the tip of the iceberg. It's just the beginning as many of them are still in the decision-making phase."

"So for ourselves, we're seeing a huge influx of institutional and corporate investors. This year alone, we've seen a 40% rise of people coming into crypto." This growth reflects the enthusiasm for Bitcoin and other cryptocurrencies from so-called big money.

Binance was investigated last year by the U.S. Department of Justice for alleged money laundering and facilitating activities for nations and organizations under U.S. sanctions. Binance reached a settlement with the U.S. government, agreeing to pay $43 billion. Its founder, Changpeng Zhao, pleaded guilty to money laundering charges and stepped down as CEO. Teng, the new CEO, noted that Binance has shifted from a company led by one founder to one with a board of seven directors, a structure more in line with regulators' preferences.

The influx of more institutional players comes after years of regulatory pressure, with the U.S. approving the first spot Bitcoin exchange-traded fund (ETF) in January of this year. In July, the U.S. also allowed a spot ETF for the second-largest cryptocurrency, Ethereum. Teng noted that such regulatory clarity would bring certainty to mainstream users. He attributed Bitcoin's record high earlier this year to "institutional clout."

He also mentioned that Larry Fink, CEO of BlackRock, has moved from being a Bitcoin skeptic to calling it "digital gold." Other traditional Wall Street investment firms like BlackRock, Franklin Templeton, etc., have also launched Bitcoin and Ethereum ETFs.

As of press time, Bitcoin is trading at $62,000, rising nearly 3% on the day.