The US SEC's approval of spot Bitcoin ETFs in January and spot Ethereum ETFs last week affected the whole world.
At this point, ETH ETF approval has increased the pressure on financial regulators in South Korea to approve similar cryptocurrency ETFs.
The US approval of ETFs has increased cryptocurrency pressure on regulators Financial Services Commission (FSC) and Financial Supervisory Service (FSS), local news agency Korea Times reported.
However, while the FSC and FSS abstained from approving BTC and ETF ETFs, the FSC, citing the Capital Markets Law, said that ETFs are only for real financial assets or securities.
“Under these circumstances, the SEC's decision on Ethereum on Thursday is expected to put pressure on Seoul's financial regulators to reconsider their regulations on digital assets,” said the founder of Seoul-based digital currency data and information provider Xangle.
Jung Eui-jung, president of the Korea Shareholders Alliance, said that following the US path of ETF approval and approving ETFs for Bitcoin-Ether is critical to ensuring that both traditional finance and digital asset investors do not leave Korea.
“After approvals, it will only be a matter of time before the US fully opens the door to ETFs and Korea approves ETFs for at least Bitcoin and Ethereum.”
*This is not investment advice.