Korea Exchange Calls for Launch of Cryptocurrency ETFs
Date: 2025-02-10 Author: Henry Casey Categories: IN WORLD
However, at the same time, the authorities must strengthen supervision of the industry to ensure transparency and reliability of operations. Such financial instruments could expand the opportunities for investors by offering them access to regulated products.
"The United States has already introduced both futures and spot cryptocurrency ETFs, and they are very popular among investors. We should follow their example and not delay this issue," said Jung Eun-bo.
He is confident that the introduction of such innovations will make the South Korean financial market more competitive and sustainable. According to him, excessive restrictions on high-risk assets can negatively affect long-term returns. Permission to launch cryptocurrency ETFs could contribute to the development of the financial sector and strengthen its position on the international stage.
In the US, the first Bitcoin futures ETF was approved by the SEC in 2021, and in January 2024, the regulator gave the green light to Bitcoin-based spot ETFs. Among the companies that offered such products were major industry players such as BlackRock and Fidelity. This decision contributed to an increase in institutional investment in cryptocurrencies and strengthened confidence in this asset class.
Despite the successful experience of the US, South Korea has not yet taken similar steps. Earlier, Deputy Finance Minister Kim Byung-hwan issued a warning, saying that digital assets cannot be considered full-fledged currencies, and therefore all risks must be carefully weighed before launching such investment vehicles.
