South Korea Stock Exchange Chairman Eun-Bo Jeong has expressed interest in introducing crypto-based exchange-traded funds (ETFs) this year, aligning with global demand for such products .
At the opening ceremony of the securities and derivatives market on January 2, Jeong reportedly stressed the need for innovative financial products to revitalize the country’s capital markets.
Jeong highlighted economic obstacles faced over the past year, citing challenges such as a shrinking domestic economy, reduced export growth and geopolitical tensions.
He explained that these factors have left South Korean financial markets lagging behind their global counterparts. Inspired by the successful international launch of Bitcoin-related financial products, the exchange plans to explore new avenues, including crypto-related ETFs, to address these issues.
The announcement marks a potential shift from South Korea’s previous stance. Last year, the Financial Supervisory Service (FSS) banned asset managers from offering ETFs linked to crypto-related companies like Coinbase.
However, the potential of crypto ETFs remains uncertain due to regulatory hurdles. Ki Young Ju, CEO of CryptoQuant, raised concerns about the country’s willingness to approve such products.
Ju compared South Korea’s cautious regulatory stance to the US Securities and Exchange Commission (SEC) led by Gary Gensler, where resistance to crypto ETFs had delayed their adoption by more than a decade, until 2024.
Success of Bitcoin ETFs
At the same time, the growing success of global crypto ETFs could influence South Korea’s interest in these products.
Bitcoin ETFs made a splashy debut in the United States, attracting substantial investment in their first year of trading. According to SoSoValue data, the 12 ETF products have accumulated more than $35 billion in inflows and demonstrated growing acceptance among institutional investors.
Additionally, market experts expect further innovation in the ETF landscape this year, given the more favorable regulatory regime led by Donald Trump’s administration.
Given this, Nate Geraci, President of the ETF Store, predicted that the market could see the launch of combined Bitcoin and Ethereum ETFs, staking options for ETH funds, and broader diversification with assets like Solana entering the ETF space.
