Spot Ether ETFs Seen as Slow, Steady Capital Injection

Richard Teng, CEO of Binance, emphasized that the spot Ether ETFs might offer a steady and sizable cash inflow over time.

The CEO of cryptocurrency exchange Binance, Richard Teng, discussed the possibilities of spot Ether exchange-traded funds (ETFs) and his expectations for the upcoming crypto investment vehicle as the ETFs get closer to going live.

The Ether ETH$3,384 ETFs are “closer to the finish line,” according to Katherine Dowling, chief compliance officer at Bitwise, who made this observation on July 10. This suggests that they could become online very soon. The CEO claims the back and forth between ETF issuers and the US Securities and Exchange Commission (SEC) is less problematic.

To open the new funds on July 23, the SEC asked issuers to submit their final S-1 filings by July 16.

Many people shared their predictions on the potential performance of the new ETH investment vehicles because the ETFs are set to begin in a short while.

Spot Ether ETFs may not appear “dramatic” at first.

In an earlier interview, managing partner of cryptocurrency investing firm MV Global, Tom Dunleavy, estimated that spot Ether ETFs might see inflows of $5 to $10 billion in the months following launch. The executive thinks this will help ETH and push the price of the cryptocurrency asset to a record high.

The CEO of Binance thinks there’s a chance it will have a more minor initial impact than some people think. Teng responded to Cointelegraph in writing, stating:

“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.”

Teng thinks that the liquidity of these ETFs might increase dramatically. As per the executive, institutional investors, who often contemplate long-term investments, will have access to the approved ETFs.

Teng continued, “This institutional involvement could provide a stable and substantial influx of capital over time.”

The CEO of Binance on Spot Ether ETFs

Teng added that the new project “builds on the positive momentum” that the industry experienced in 2024. According to the executive, this demonstrates the reliability and accessibility of cryptocurrencies. Teng stated:

“The upcoming launch of ETH spot ETF trading in the US marks yet another significant milestone for Ethereum and the broader digital asset market.”

Like the January-launched spot Bitcoin ETFs, Teng thinks the initial wave of spot Ether ETFs may offer more options for a broader spectrum of investors. According to Binance’s CEO, the launch of the ETFs allays major worries about security, compliance, and legality, making ETH a more alluring investment choice in general.