South Korea Urged to Launch Crypto ETFs as Global Markets Expand

• KRX Chairman Jung Eun-bo stresses that South Korea risks falling behind if it delays the introduction of cryptocurrency ETFs.
• The U.S. market already offers 20 cryptocurrency ETFs, with new filings expanding to include assets like Solana and Dogecoin.
• South Korean regulators are reviewing crypto ETF approvals, but no timeline has been provided, raising concerns over regulatory delays.

South Korea should introduce cryptocurrency exchange-traded funds (ETFs) to keep pace with global financial markets, according to Korea Exchange (KRX) Chairman Jung Eun-bo. He emphasized the importance of integrating crypto ETFs into the country’s financial system to avoid lagging behind major economies already embracing these investment products.

Global Crypto ETF Market Expands

Jung highlighted that South Korea ranks as the third-largest cryptocurrency trading nation. He warned that delaying crypto ETFs could hinder market growth while other nations advance in digital asset investments. South Korea should implement similar financial regulations to the United States where both spot-based Bitcoin ETFs alongside futures-based Bitcoin ETFs operate freely in the market.

The U.S. market has 20 cryptocurrency exchange-traded products available in February 2025 that consist of 12 spot Bitcoin ETFs alongside 8 Bitcoin strategy ETFs as well as 9 spot Ethereum ETFs. Asset managers continue to file applications for ETFs that track digital assets including Solana XRP and Dogecoin in addition to the existing products.

The statements from Jung emerged during a time when South Korea’s financial sector was dealing with declining investor numbers together with widespread debt-dependent struggling companies. The introduction of cryptocurrency ETFs according to Jung would give investors a regulated way to access digital assets through structured products and create market stability.

Excessive regulation would hinder innovation according to him. Furthermore, he called for easing restrictions on pension fund investments in equities, stressing that strict limits on high-risk assets might reduce long-term returns.

Regulatory Developments and Industry Response

South Korean regulators have been considering the approval of cryptocurrency ETFs. However, no clear timeline has been set. In October, local reports indicated ongoing discussions on the matter, while Financial Supervisory Service Governor Lee Bok-hyun hinted at possible approval of spot Bitcoin ETFs.

Jung previously advocated for cryptocurrency ETFs following a market downturn caused by political uncertainty. During the Securities and Derivatives Market Opening Ceremony 2025, he reiterated the need for new financial instruments to attract investors and stimulate market activity.

The push for crypto ETFs aligns with efforts to modernize South Korea’s financial landscape. While regulatory uncertainties remain, industry experts believe that the introduction of cryptocurrency ETFs could enhance market growth and investor confidence. As other global financial markets move ahead, the pressure is mounting for South Korea to take decisive steps toward integrating digital asset ETFs into its financial system.