With Binance (CRYPTO: BNB) CEO Changpeng Zhao's resignation Tuesday on the heels of a U.S. Justice Department investigation, the field is clear for large institutions to take over the Bitcoin (CRYPTO: BTC), Ether (CRYPTO: ETH) ETFs market, observers say. PHOTO BY KANCHANARA/UNSPLASH
With Binance (CRYPTO: BNB) CEO Changpeng Zhao’s resignation Tuesday on the heels of a U.S. Justice Department investigation, the field is clear for large institutions to take over the Bitcoin (CRYPTO: BTC), Ether (CRYPTO: ETH) ETFs market, observers say.
Investor Mike Alfred suggests that Zhao’s exit from Binance paves the way for traditional financial giants like BlackRock (NYSE: BLK), Fidelity, and Invesco to dominate the space — especially if the U.S. Securities and Exchange Commission approves a spot Bitcoin ETF.
With Binance (CRYPTO: BNB) CEO Changpeng Zhao’s resignation Tuesday on the heels of a U.S. Justice Department investigation, the field is clear for large institutions to take over the Bitcoin (CRYPTO: BTC), Ether (CRYPTO: ETH) ETFs market, observers say. PHOTO BY KANCHANARA/UNSPLASH
Other crypto professionals provided their take.
Helio CEO Stijn Paumen said Zhao’s departure is the end of an era. Zhao played significant role in bringing people into the Bitcoin and crypto sphere, Paumen said, adding the settlement between Binance and the DoJ is a positive step toward sustainable crypto adoption and regulatory standards.
Reflexivity Research co-founder Will Clemente anticipates the approval of a Bitcoin ETF in the coming weeks, signaling a new phase of growth and acceptance for cryptocurrencies.
“I have a hard timing thinking BlackRock didn’t have some type of informational edge around Binance when they initially filed,” Clemente said. “We just got clarity of Binance and are now only seven weeks out from the ETF deadline for Ark. Feels like way too much of a coincidence.”
Messari CEO Ryan Selkis views the $4-billion settlement as a pivotal moment. Binance’s decision to de-risk is one of the most significant catalysts for the crypto sector, he says. He also noted that Zhao might take a much-needed vacation, similar to Arthur Hayes of BitMEX.
Antonio Juliano, the founder of decentralized exchange dYdX, shared his perspective on what Zhao’s departure means for Binance.
He acknowledged that the $4-billion fine is substantial but manageable for the exchange due to its size. Zhao’s leaving the CEO role is a negative for Binance, potentially leading to a lack of innovation and long-term decline, Juliano said.
