Key Points
- South Korea may approve Bitcoin ETFs if Japan greenlights them, according to a local report.
- Japan’s ongoing discussion on virtual assets will conclude in 2025, with legislation expected in the second half of the year.
South Korea could potentially join the Bitcoin Bitcoin (BTC) ETF trend, following Japan’s more lenient stance on the cryptocurrency.
This information comes from a report by the South Korean-based Maeil Business Newspaper, which suggests that Seoul may give the green light to BTC ETFs if Tokyo does the same.
Regulatory Monitoring
The report also mentions that South Korea’s regulator, the Financial Supervisory Service (FSS), has been keeping an eye on Japan’s virtual asset trends, particularly its receptiveness towards crypto ETFs.
It is further reported that Japan’s ongoing virtual asset discussions will conclude in the first half of 2025, followed by the crafting of legislation in the second half. By 2026, Japan’s national assembly will be prepared to vote on the framework.
South Korea’s Position
Japan’s intentions are crucial, as South Korean authorities have been hesitant about these products, often citing the lackluster response of Japan and the UK. In February, Kim So Young, Vice Chairman of South Korea’s FSS, stated his intention to carefully review Bitcoin spot ETFs.
The response from Seoul to Japan’s move is yet to be seen. However, multiple jurisdictions have become more open to BTC ETFs since the U.S. approved the products last year.
This approval has made it easier to buy or sell BTC via traditional stock markets. In fact, U.S. spot BTC ETFs now have $100 billion in assets under management (AUM).
Following the U.S., Hong Kong approved the products in April and now has $354M in AUM. BTC’s value surged from $40K to $70K with stock market integration, and then surpassed $100K due to the ‘Trump trade.’
State Street forecasts that by late 2025, crypto ETF AUM could surpass precious metals ETF AUM, indicating growing market confidence.
In the 2025 ETF outlook report, Robert Mitchnick, BlackRock’s digital asset research head, stated that U.S. fiscal debt and nation-state adoption of BTC as an alternative reserve asset could drive the cryptocurrency’s value.