Binance CEO CZ Says Crypto Space Needs Entrepreneurs, not ETFs
Changpeng Zhao, CEO of massive cryptocurrency exchange Binance, said he does not believe Exchange Traded Funds (ETFs) “are core to our industry’s growth” in a Periscope livestream published on Binance’s Twitter account yesterday.
Zhao, or CZ, as he is more commonly known, went on explain:
“I think for our industry to grow we need more entrepreneurs to build real projects.”
While not necessarily a hot take, his opinion does run counter to many crypto investors’ belief that the space will truly take off when Wall Street banks and other large institutions start pouring money into cryptocurrency. And as many have pointed out, this can only happen when more advanced products, like ETFs and institutional-grade custody, are available.
Many attempts have been made to establish the first crypto-based ETF. Just last week, the Chicago Board Options Exchange (CBOE), investment firm VanEck, and financial services company SolidX reapplied to the Securities and Exchange Commission (SEC) in order to establish a Bitcoin ETF, just one week after withdrawing their previous request.
During the livestream, CZ was asked about the controversy surrounding the QuadrigaCX exchange. In response, he said that he does not want to comment on rival exchanges, but noted, “there’s something fishy going on.”
After QuadrigaCX founder Gerald Cotten died suddenly on a trip to India earlier this month, it was reported that the exchange was missing CA$190 million (US$145) in digital assets. Cotten was said to be the sole holder of the private keys to the cold wallets where the cryptoassets were held, making them completely unrecoverable. However, many in the crypto community — including CZ himself — remain suspicious of an exit scam or some other foul play.
Later in the livestream, CZ also noted that “there’s nothing going right now” with Binance, but the company is exploring using Ripple’s xRapid system in order to make international payments more quickly.