South Korean exchange chairman Eun-Bo Jeong has expressed interest in introducing cryptocurrency-based exchange-traded funds (ETFs) this year, in line with global demand for such products.
At the opening ceremony of the securities and derivatives market on January 2, Jeong It has been reported He emphasized the necessity of producing innovative financial products to revive the country's capital market.
Citing challenges such as slowing domestic economic growth, declining export growth and geopolitical tensions, Jeong highlighted the economic obstacles facing the past year.
He explained that these factors have caused South Korea's financial markets to lag behind their global peers. Inspired by the successful international launch of Bitcoin-related financial products, the exchange plans to explore new ways to address these issues, including cryptocurrency-related ETFs.
The announcement marks a possible reversal of South Korea's previous stance. Last year, the Financial Supervisory Service (FSS) Limited Asset Managers From offering ETFs linked to crypto-related companies like Coinbase.
However, the potential of crypto ETFs remains uncertain due to regulatory hurdles. Key Young Joo, CEO of CryptoQuant raised concerns About the readiness of the country to approve such products.
Joe likened South Korea's cautious regulatory stance to that of the US Securities and Exchange Commission (SEC) led by Gary Gensler, where resistance to crypto ETFs delayed their adoption for more than a decade until 2024.
The success of the Bitcoin ETF
Meanwhile, the growing success of global cryptocurrency ETFs may influence South Korea's interest in these products.
Bitcoin ETF It made a strong debut in the US, attracting significant investment in its first year of business. According to SoSoValue data, 12 ETF products have raised more than $35 billion in capital. It showed increasing acceptance among institutional investors
Additionally, market experts are led by a more favorable regulatory regime Donald Trump Management.
With that in mind, Nate Geraci, head of the ETF Store, has done just that predicted that the market could see the launch of a hybrid bitcoin and Ethereum ETFs, stock options for ETH funds, and broader diversification with assets like Solana entering the ETF space.
