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Cryptocurrency exchange Binance has experienced a 40% uptick this year in institutional and corporate investors joining the platform, according to CEO Richard Teng in an interview with Lin Lin on Wednesday.
Teng pointed out that the allocation into crypto by institutions is just beginning, with many still conducting their due diligence. He mentioned that there has been a significant increase in onboarding institutional and corporate investors, although specific firms were not disclosed.
The surge in institutional interest reflects a growing acceptance of bitcoin and other cryptocurrencies among big investors, despite Binance’s recent U.S. probe and $4.3 billion settlement. Changpeng Zhao, the former CEO who stepped down as part of the settlement, remains a major shareholder in the company.
Teng highlighted how Binance has shifted to a board-led structure, a move seen more favorably by regulators. The company’s transition from a founder-led model demonstrates a commitment to regulatory compliance and stability.
Teng, who took on the role of CEO in 2023, emphasized the mainstream adoption of cryptocurrencies facilitated by regulatory developments. With the U.S. approving the first bitcoin exchange-traded funds and similar funds for ether, regulatory clarity has provided confidence for mainstream users.
The record high price of bitcoin earlier this year was attributed to the influx of institutional investors. BlackRock CEO’s endorsement of bitcoin as “digital gold” and the issuance of cryptocurrency ETFs by traditional investment firms further validate the industry’s growth potential.
While Teng declined to provide a specific price forecast, he noted the historical trend of cryptocurrency prices warming up around 160 days after a bitcoin halving event, which occurred in April. With the market approaching another 160-day mark, the potential for price movement remains a topic of interest for investors.
Overall, the increasing institutional interest in cryptocurrencies and the evolving regulatory landscape signal a positive outlook for the industry’s growth and adoption.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.
