Leading experts urge South Korea to introduce cryptocurrency exchange-traded funds (ETFs) to keep pace with global financial markets.
Global Crypto ETF Market Expands
According to Korea Exchange Chairman Jung Eun-bo, South Korea ranks as the third-largest cryptocurrency trading nation. Delaying crypto ETFs could hinder market growth. The U.S. already has 20 cryptocurrency ETFs, including 12 spot Bitcoin ETFs and 9 spot Ethereum ETFs. Asset managers are filing for ETFs tracking assets like Solana and Dogecoin.
Regulatory Developments and Industry Response
South Korean regulators are reviewing crypto ETF approvals, but no timeline has been provided. In October, there were reports of ongoing discussions, and Financial Supervisory Service Governor Lee Bok-hyun hinted at approving spot Bitcoin ETFs. The introduction of crypto ETFs is expected to provide regulated investor access to digital assets and stabilize the market.
The Need for Crypto ETFs in the Economy
Jung Eun-bo emphasizes that excessive regulation could hinder innovation. He advocates easing restrictions on pension fund equity investments, arguing that strict limits on high-risk assets may reduce long-term returns. Introducing crypto ETFs could enhance South Korea's financial landscape.
As global financial markets advance, the pressure on South Korea to implement cryptocurrency ETFs increases. Experts believe these steps will boost investor confidence and stimulate market growth.
