The chief executive officer of the world’s largest digital coin exchange Binance does not believe that cryptocurrency exchange-traded funds (ETFs) are essential for the growth of the industry, Cointelegraph has reported.
Some cryptocurrency supporters believe that a potential launch of a Bitcoin ETF, especially in the US could have a similar effect on the crypto market as the launch of Bitcoin futures on major US exchanges in late 2017. That development was the main catalyst for the rally that led to Bitcoin hitting an all-time high of just over $20,000 in December of that year. However, US regulators, namely the Securities and Exchange Commission (SEC) have so far been reluctant to approve crypto ETF offerings. Recently, Cboe Global Markets, the owner of the Chicago Board Options Exchange, resubmitted for approval a joint proposal with VanEck and SolidX, rekindling hops that a Bitcoin ETF could launch this year.
According to Binance CEO Changpeng Zhao, however, the crypto industry should focus more on developing projects.
“I think for our industry to grow we need more entrepreneurs to build real projects,” Zhao said during a live stream on February 6.
During the life stream, Zhao also indicated that his company is interested in partnering with Ripple and using the San Francisco-based firms xRapid settlement solution, which uses XRP. However, he also indicated that the company is not actively working on such a partnership at this time.
Binance is the world’s largest digital currency exchange, as measured by trading volume. According to data from cryptocurrency tracker Coinmarketcap, the exchange has processed nearly $573.5 million of cryptocurrency trades. The company’s most-traded offering is the BTC/UDST trading pair, which accounts for 14.7% of that volume.