According to Cointelegraph: As the launch of spot Ether ETFs draws near, Binance CEO Richard Teng has weighed in on the potential impact of this new crypto investment vehicle. While some experts predict significant initial inflows, Teng anticipates a steady but substantial influx of capital over time.
Anticipated Launch of Spot Ether ETFs
On July 10, Bitwise’s chief compliance officer Katherine Dowling noted that spot Ether ETFs are "closer to the finish line," indicating an imminent launch. The United States Securities and Exchange Commission (SEC) has requested issuers to submit their final S-1 filings by July 16, aiming to launch the new funds on July 23.
Predictions on ETF Performance
In a previous interview, Tom Dunleavy, managing partner at MV Global, predicted that spot Ether ETFs could see $5 to $10 billion in inflows in the months following their launch. This influx is expected to positively impact ETH, potentially driving its price to a new all-time high.
Binance CEO's Perspective
Contrary to the expectations of a dramatic initial impact, Binance CEO Richard Teng suggests a more measured outlook. In a written response to Cointelegraph, Teng said:
“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 the potential for exponential growth in liquidity for these ETFs once approved. He noted that institutional players, often focused on long-term investments, could provide a stable and substantial influx of capital over time.
Building on Positive Momentum
Teng highlighted that the launch of spot Ether ETFs builds on the positive momentum seen in the crypto space in 2024, further solidifying the legitimacy and accessibility of digital assets. He remarked:
“The upcoming launch of ETH spot ETF trading in the US marks yet another significant milestone for Ethereum and the broader digital asset market.”
Institutional Involvement and Market Legitimacy
Teng believes that the introduction of spot Ether ETFs will open new investment avenues, addressing key concerns surrounding legitimacy, compliance, and security. This development is expected to make ETH an increasingly attractive investment option, similar to the impact seen with the launch of spot Bitcoin ETFs in January.
