The CEO of crypto exchange Binance has dismissed those striving to launch a crypto exchange traded fund (ETF), saying what the industry needs instead is more entrepreneurs and more projects to take the sector into the mainstream.
Changpeng Zhao, known in crypto circles as CZ, said during a Periscope stream that rather than ETFs, “for our industry to grow we need more entrepreneurs to build real projects.”
The comments from the influential CEO come at a time of renewed optimism around ETF proposals from VanEck and SolidX, which are hoping to clear regulatory approval with the U.S. Securities and Exchange Commission (SEC).
The prospect of an ETF launch has investors excited too, with the suggestion that anticipation was responsible for a temporary recovery in Bitcoin Core (BTC) prices. But according to CZ, continuing the development of crypto projects and creating new crypto entrepreneurs was more important to the success of the sector.
Exchange traded funds are instruments listed on mainstream financial exchanges, giving investors the chance to buy securities pegged to investments in underlying assets. In the crypto case, this would mean a mainstream, traded investment product tied to the growth of cryptocurrencies, which many assume would attract larger institutional investors into the space.
CZ’s view is that development activity will help create new products and services which will guide crypto to mass adoption, suggesting that this would be a better focus for optimism than the launch of an ETF.
In interview, CZ said he expects Amazon will eventually be forced to issue its own altcoin, which he expects will be another significant event in the journey of crypto to mass adoption and usage.
His comments come at a time of rapid growth in the number and scope of projects in cryptocurrency, with the most notable development action happening around Bitcoin SV (BSV). Preferred for its superior technological infrastructure, Bitcoin SV is winning fans amongst merchants and consumers, as well as startups looking to develop blockchain projects.
With ultra-low transaction fees, fast processing times and infrastructure designed for handling mass global scale, Bitcoin SV is fast becoming the standout choice for development projects.
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.
