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South Korea’s Finance Ministry Announces Plans for Digital Asset Spot ETFs

South Korea’s Finance Ministry Announces Plans for Digital Asset Spot ETFs

South Korea follows in the footsteps of the U.S. and Hong Kong, planning to introduce spot cryptocurrency ETFs by 2026, alongside stablecoin regulation development in phase two of its crypto legislation.

BTC
ETH

Summary

South Korea’s finance ministry outlined plans to introduce spot digital asset ETFs by 2026, following the U.S. and Hong Kong’s lead. Bitcoin spot ETFs experienced $399 million in net outflows, while Ethereum ETFs saw $159 million in losses, driven by BlackRock’s $108 million withdrawal from its ETHA product. The second phase of the nation’s crypto legislation will focus on stablecoin regulation.

Terms & Concepts
  • Spot ETF: An exchange-traded fund that holds the underlying asset directly, providing price exposure without using derivatives.
  • ETHA: Ticker for BlackRock’s Ethereum ETF referenced; it saw a $108 million withdrawal.
  • Decentralization: A system design where control and decision-making are distributed across a network rather than a single central authority.