Binance: "Bitcoin ETF Drives Institutional Participation... Opportunities Ahead for Korea"

Catherine Chen, Head of Institutional
"Regulatory clarity drives institutional participation"

Binance, the world's largest virtual asset exchange, stated that institutional investments in Bitcoin spot exchange-traded funds (ETFs) have increased and, if regulations are established in Korea, the company will offer its products in the Korean market as well.

Catherine Chen, Head of Institutional at Binance, said at the 4th Binance Blockchain Study held on May 14, 2026, at Episode Gangnam 262 in Seoul, "The launch of BlackRock's Bitcoin spot ETF has accelerated institutional participation," and added, "If a favorable regulatory environment is established in Korea, we will be able to provide the same products to institutional investors as we do in other countries." Chen, who spent 16 years managing derivatives and structured products at JP Morgan and Morgan Stanley, joined Binance in 2021.

Catherine Chen, Head of Institutional at Binance, is speaking at the 4th Binance Blockchain Study held on the 14th at Episode Gangnam 262 in Seoul. Photo by Oh Gyumin

Chen emphasized that for institutional investors to participate in the virtual asset market, exchanges must have robust compliance systems and address systemic differences with traditional finance. "The most important factor for all institutional investors when collaborating is Binance's ability to prioritize compliance," she explained. Binance has invested over 213 million dollars (approximately 317.86 billion won) in building its systems since 2013, and Chen highlighted that the compliance team is one of the largest organizations within the company. Binance has also achieved milestones such as obtaining a global license from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi, United Arab Emirates, earlier this year.

Binance also stated that it has encouraged institutional participation by overcoming system differences between traditional finance and virtual asset exchanges. According to Chen, traditional finance stores assets with separate custodians and settles transactions after trading. In contrast, virtual assets require funds to be deposited in advance with the exchange. Binance resolved this through a "tripartite agreement" involving the bank, client, and exchange. Chen said, "Fiat currency itself is deposited with the bank, and Binance issues on-chain virtual assets, allowing institutions to trade virtual assets without risk from their perspective."

Catherine Chen, Head of Institutional at Binance, is giving a presentation at the 4th Binance Blockchain Study held on the 14th at Episode Gangnam 262 in Seoul. Photo by Oh Gyumin

She added that the emergence of Bitcoin spot ETFs and the legalization efforts in various countries have further accelerated institutional participation. Chen explained that Bitcoin ETFs surpassed 60 billion dollars in assets under management (AUM) within just about two years of their launch. "This was a shorter time frame than it took for gold ETFs, a traditional safe asset, to reach the same scale, marking the fastest growth in history," she said. She also noted, "The legitimacy of virtual assets has been well demonstrated, making it easier for institutions to approach the market through familiar products like ETFs." Chen further explained that global regulatory clarity, such as the U.S. GENIUS Act, Europe's MiCA, and Hong Kong's stablecoin ordinance, has also encouraged institutional participation. As a result, the composition of institutional investors has diversified from proprietary traders and market makers in the past to include hedge funds, family offices, and asset management companies.

Although regulatory restrictions currently make institutional participation difficult in Korea, Chen stated that Binance will offer the same products to Korean institutional investors as in other countries in the future. She emphasized that, despite various limitations, Korean institutions have continued to invest in virtual assets, and that clearer regulations are needed. "I have seen cases where Korean institutions invested in MicroStrategy stock, which has the highest correlation with Bitcoin, as a Bitcoin proxy," Chen said. "While there are institutions that actively invest through overseas affiliates or subsidiaries within the possible scope, for institutions to engage more proactively, regulatory clarity is essential," she stressed.

This content was produced with the assistance of AI translation services.