Binance CEO Richard Teng highlighted that the introduction of spot Ether ETFs could lead to a steady and substantial influx of capital over time.
As spot Ether exchange-traded funds (ETFs) near their launch, Richard Teng, the CEO of Binance, shared his insights on the potential impact of these new investment vehicles.
On July 10, Bitwise’s chief compliance officer, Katherine Dowling, noted that the spot Ether ETFs are “closer to the finish line” and could be available soon. She mentioned that there are fewer regulatory hurdles in the ongoing discussions between ETF issuers and the U.S. Securities and Exchange Commission (SEC).
The SEC requested issuers to submit their final S-1 filings by July 16 to launch the new funds on July 23.
With the launch approaching, experts have shared their predictions on the performance of these new investment vehicles for ETH.
Spot Ether ETFs May Not Have Immediate Impact
Tom Dunleavy, managing partner at crypto investment firm MV Global, previously predicted that spot Ether ETFs could attract $5 to $10 billion in inflows in the months following their launch. He suggested this could push ETH’s price to a new all-time high.
While some anticipate a significant initial impact, Binance CEO Richard Teng believes the initial effect might be more subdued. In a written response to Cointelegraph, Teng stated:
“While we anticipate a steady capital deployment into these ETFs, it is unlikely to be dramatic initially and will fluctuate based on various macroeconomic factors.”
However, Teng emphasized that the liquidity of these ETFs has the potential to grow significantly over time. He noted that once approved, these ETFs would be accessible to institutional investors who often take a long-term view on investments.
“This institutional involvement could provide a stable and substantial influx of capital over time,” Teng added.
Summary Review: While the initial impact of spot Ether ETFs may not be dramatic, their long-term potential for steady capital inflow is significant. According to Binance CEO Richard Teng, these ETFs will attract institutional investors who are likely to provide a stable and substantial influx of capital over time. As the market prepares for the launch of these new investment vehicles, the broader implications for ETH and the cryptocurrency market remain promising, with the possibility of sustained growth and increased liquidity.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
