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Kookmin Bank to Launch South Korea’s First Crypto ETF

UTC by Oluwapelumi Adejumo · 3 min read
Kookmin Bank to Launch South Korea’s First Crypto ETF
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Crypto ETFs are financial tools for tracking specific asset values while allowing investors to diversify their portfolios absent token ownership. With this development, South Korea could become the latest country that has welcomed a crypto ETF into its jurisdiction.

South Korea’s Kookmin Bank plans to release the country’s first cryptocurrency investment fund with retail investors as the main focus.  According to the announcement, the bank is waiting for government approval and has developed a Digital Asset Management Committee in readiness, targeted at launching a crypto ETF alongside future products.

This move would allow the leading Korean bank to shift from its current stand as a traditional asset correlation firm in retirement pension and Outsourced Chief Investment Officers (OCIOs) markets to developing crypto indexes that would be open to a wider market.

Presently, the South Korean government does not allow local financial institutions in the country to offer crypto-related trading services; however, institutions looking to expose their client base to this investment class do so by partnering with other exchange platforms.

KB is the largest bank in South Korea based on the net assets metrics.

Per Hong-Gom Kim, the head of Kookmin Bank’s index management division, the bank plans to launch an asset-based equity as soon as possible and it would also be publishing periodicals at intervals.

A New Trend for Asian Institutions?

The development draws inspiration from the crypto-transitions made by other renowned banks within the Asian community. One such transition was made by Singapore-based DBS Bank, which declared its commitment to introducing a retail digital asset trading desk in 2022.

Another similar case is that of the Union Bank of the Philippines, which revealed its intentions to provide digital asset trading services among other custodial offerings.

Crypto ETFs Are Becoming More Popular

Crypto ETFs are financial tools for tracking specific asset values while allowing investors to diversify their portfolios absent token ownership. With this development, South Korea could become the latest country that has welcomed a crypto ETF into its jurisdiction.

Already, Canada, Brazil, and the USA have approved different ETFs for their investors. Authorities in the United States have refused to approve a spot ETF application citing the need to protect investors.

However, the Purpose Bitcoin ETF just recently recorded the second-largest inflow in the ETF’s history as it saw an inflow of over 1,100 BTC, which was only surpassed by its opening day. Notably, it also recorded an outflow of over 2,000 BTC on February 7, the largest outflow of the ETF.

The US SEC has also got an influx of letters from investors and lawmakers urging the regulator to approve a spot ETF.

What the above shows is that the thirst for crypto ETFs remains high amongst investors.

Bitcoin News, Cryptocurrency news, Funds & ETFs, Market News, News
Oluwapelumi Adejumo

Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.

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