Binance Reports 40% Surge in Institutional Investors as Crypto Gains Institutional Traction
Binance, a leading cryptocurrency exchange, has experienced a significant 40% growth in institutional and corporate investors throughout the year, according to CEO Richard Teng. In an exclusive interview with CNBC’s Lin Lin at the Token2049 conference in Singapore, Teng emphasized that institutional involvement in the cryptocurrency space is only beginning to take shape, with many investors still conducting due diligence before fully committing.
“We are just seeing the tip of the iceberg when it comes to institutional allocation into crypto,” Teng remarked. “We’ve noticed a huge increase in onboarding from institutional and corporate investors, with a 40% rise in that category over the past year alone.” While Teng did not disclose specific names, this surge indicates a growing acceptance of digital assets among traditional investors.
The growing interest from institutional investors reflects the broader shift toward cryptocurrencies like Bitcoin and Ethereum, even as Binance has faced regulatory challenges, including a U.S. investigation and a $4.3 billion settlement. Despite these hurdles, the platform continues to attract large-scale investors. Teng highlighted that Binance has evolved into a more structured entity, now governed by a seven-member board, a move designed to better align with regulatory expectations. This marks a significant transition from its previous founder-led approach under Changpeng Zhao, who stepped down as CEO but remains a major shareholder.
Institutional Interest Sparks Market Momentum
The increasing involvement of institutional investors has been a key factor in driving cryptocurrency prices higher. Teng pointed to the approval of exchange-traded funds (ETFs) for both Bitcoin and Ethereum by U.S. regulators as a milestone that is bringing greater certainty to the market. He also noted the role of major Wall Street firms such as BlackRock and Franklin Templeton in spearheading the development of these crypto-based financial products.
“Regulatory clarity is a game-changer for mainstream adoption,” Teng said. He linked Bitcoin’s record-breaking price of over $70,000 earlier this year to the influx of institutional capital, attributing much of this growth to the entry of well-known investment firms. BlackRock CEO Larry Fink, who once doubted Bitcoin’s value, now refers to it as “digital gold,” reflecting the changing sentiment within the financial world.
Franklin Templeton CEO Jenny Johnson echoed similar sentiments earlier this year, suggesting that Bitcoin’s recent gains were driven by early adopters, with a much larger wave of institutional investors expected to follow suit.
What’s Next for Cryptocurrency Prices?
Teng refrained from providing a concrete price prediction for Bitcoin but did mention the significance of a technical event called "halving," which typically affects cryptocurrency prices. Historically, the market has shown a notable uptick 160 days after each halving event. With the latest halving occurring in April, Teng pointed out that the market is approaching this key moment, potentially signaling further upward momentum for cryptocurrency prices.
As of Wednesday, Bitcoin was trading near $60,440, with market observers closely watching the approaching “halving effect” and the continued influx of institutional capital, which could play a pivotal role in shaping the future of the cryptocurrency market.