As interest in Bitcoin exchange-traded funds (ETFs) rises globally, South Korea is considering a significant decision. Discussions within the country’s financial authorities suggest they may allow spot Bitcoin ETFs.
This move comes as countries worldwide work on regulatory frameworks for the growing cryptocurrency market, coinciding with Bitcoin’s price nearing its all-time high.
South Korea Contemplates Bitcoin Spot ETF Approval
South Korea, known for its tech-savvy population, is actively considering the possibility of permitting Bitcoin Spot ETFs. Financial Supervisory Service governor Lee Bok-hyun revealed in a recent radio interview that discussions are ongoing among authorities regarding the potential legalization of Bitcoin Spot ETFs within the country.
Lee expressed optimism about virtual assets while acknowledging differing perspectives within regulatory circles. The financial watchdog aims to consider the viewpoints of other officials before making a final decision on approval.
However, the classification of Bitcoin as an underlying asset remains a significant concern for South Korean regulators. While financial authorities initially indicated no intent to regulate Bitcoin ETFs in January, questions arose regarding brokerage sales of spot Bitcoin ETFs under the Capital Markets Act.
Lee anticipates public engagement on the matter following expected regulatory control over virtual assets in the latter half of the year.
Discussions between South Korean regulators, particularly the Financial Supervisory Service (FSS), and their counterparts in the United States, specifically the Securities and Exchange Commission (SEC), are scheduled for May.
These discussions will cover key topics such as non-fungible tokens (NFTs) and the potential inclusion of Bitcoin Spot ETFs within the realm of virtual assets.
Global Interest in Bitcoin ETFs Surges
The discourse surrounding Bitcoin ETFs in South Korea aligns with heightened global interest, particularly influenced by developments in the United States. The recent SEC approval of U.S. Bitcoin Spot ETFs on January 10 led to significant inflows, with renewed momentum observed in recent weeks.
Uptick in U.S. Bitcoin ETF Inflows: On March 4, U.S. Spot Bitcoin ETF inflows surged, marking a notable uptick after a brief slowdown in the previous week. Total Bitcoin ETF inflows for the day reached an impressive $588 million, with industry giants Fidelity and BlackRock reporting inflows exceeding $400 million each. However, amidst this surge, the Grayscale Bitcoin Trust (GBTC) experienced a significant downturn, recording net outflows totaling $368 million.
Wall Street’s Growing Appetite for Cryptocurrencies: This surge in Bitcoin ETF interest underscores the increasing appetite for cryptocurrencies on Wall Street, evidenced by Bitcoin nearing its all-time high. Additionally, beyond the U.S. and South Korea, other nations like Taiwan are also considering regulatory frameworks for Bitcoin ETFs.
Taiwanese Regulatory Assessment: The Financial Supervisory Commission of Taiwan is set to evaluate public demand and regulatory feasibility, potentially impacting Taiwanese investors interested in overseas Bitcoin ETFs.
Bitcoin Price and Trading Volume: Notably, the Bitcoin price rose by 3.89% over the last 24 hours, trading at $66,545.27, while its trading volume surged by 123.65% to $78.26 billion. Within the same period, it reached a high of $68,785.95, approaching its all-time high.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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