tl;dr
South Korea's Exchange Chairman, Eun-Bo Jeong, has expressed interest in introducing crypto-based exchange-traded funds (ETFs) to revitalize the country's capital markets, citing global demand for such products. This marks a potential shift from South Korea's previous stance, with the potential for ...
South Korea's Exchange Chairman, Eun-Bo Jeong, has expressed interest in introducing crypto-based exchange-traded funds (ETFs) to revitalize the country's capital markets, citing global demand for such products. This marks a potential shift from South Korea's previous stance, with the potential for crypto ETFs uncertain due to regulatory hurdles.
With the success of global crypto ETFs, particularly in the United States, influencing South Korea's interest in these products, market experts anticipate further innovation in the ETF landscape, including combined Bitcoin and Ethereum ETFs and broader diversification with assets like Solana entering the ETF space.
At the Securities and Derivatives Market Opening Ceremony, Jeong emphasized the need for innovative financial products to address economic hurdles faced in the past year, which left South Korea's financial markets lagging behind their global counterparts.
Last year, the Financial Supervisory Service (FSS) restricted asset managers from offering ETFs tied to crypto-related firms like Coinbase, adding uncertainty to the potential for crypto ETFs due to regulatory hurdles.
Meanwhile, global crypto ETFs' growing success, with more than $35 billion in inflows and increasing acceptance among institutional investors, might influence South Korea's interest in these products. Additionally, market experts anticipate further innovation in the ETF landscape this year, potentially including combined Bitcoin and Ethereum ETFs, staking options for the ETH funds, and broader diversification with assets like Solana entering the ETF space.