South Korea must embrace cryptocurrency ETFs now to stay ahead, says the Korea Exchange chairman, calling them a game-changer for market growth and financial innovation.
Crypto ETFs Are the Future: Korea Exchange Chairman Pushes for Approval
Jung Eun-bo, Chairman of the Korea Exchange, has advocated for the listing of cryptocurrency exchange-traded funds (ETFs) in South Korea, underscoring the imperative to remain abreast of global financial trends. In a recent interview conducted in Seoul, as translated by Google, Jung emphasized that South Korea ranks third globally in terms of real cryptocurrency trading volume. He further highlighted the potential of cryptocurrency to generate novel value within the financial sector.
The U.S. has both futures and spot ETFs listed and actively traded. We need to allow cryptocurrency ETF trading without further delay.
Jung’s remarks come at a critical juncture for South Korea’s stock market, which is grappling with a dwindling investor base and structural challenges such as excessive corporate splits and struggling “zombie companies.” He has emphasized the paramount importance of strengthening market oversight and enhancing transparency as key priorities. His broader strategy encompasses advocating for corporate value enhancement initiatives, safeguarding minority shareholders, and expediting the delisting of non-viable firms.
Regarding cryptocurrency exchange-traded funds (ETFs), Jung contends that their introduction would augment the financial market’s depth and provide investors with more regulated avenues for exposure to digital assets.
As regulatory bodies engage in discussions on financial reforms, Jung has expressed concerns over excessive legislation, particularly in the realm of corporate governance laws. He advocates for greater flexibility and competitiveness in South Korea’s financial markets, enabling innovation rather than being encumbered by restrictive measures. Additionally, he supports the relaxation of regulations on pension fund investments in equities, arguing that stringent limits on risky assets hinder long-term returns. Jung’s advocacy for cryptocurrency ETFs aligns with his broader vision of modernizing South Korea’s financial landscape to maintain its competitiveness with global markets.
The cryptocurrency ETF market has experienced rapid growth in major financial hubs, particularly in the United States. The U.S. Securities and Exchange Commission (SEC) approved bitcoin futures ETFs in 2021, followed by the authorization of spot bitcoin ETFs in January 2024, which catalyzed substantial inflows from institutional investors. Ether ETFs subsequently gained traction. Prominent asset managers, such as Blackrock and Fidelity, have launched cryptocurrency ETFs, contributing to mainstream adoption. Beyond the United States, Canada and several European countries, including Germany and Switzerland, have also embraced cryptocurrency ETFs, offering investors regulated avenues for gaining exposure to digital assets. Notably, South Korea, despite its thriving cryptocurrency market, has yet to adopt cryptocurrency ETFs, raising concerns about its lagging progress in this area.
concerns about missing out on financial innovation.
