Wavebridge CEO: "Cryptocurrency spot ETFs are comparable to the entire Korean ETF market... urgent need for domestic introduction"

There are calls for the introduction of cryptocurrency (crypto) spot exchange-traded funds (ETFs) in Korea. The argument is that this could serve as a catalyst for growth in the cryptocurrency industry.

On the 6th, Oh Jong-wook, CEO of Wavebridge, stated at a seminar titled 'Who are Korea's Digital Asset Investors?' hosted by Democratic Party member Min Byung-deok at the National Assembly, "Major financial institutions like BlackRock and Fidelity have launched Bitcoin (BTC) spot ETFs and achieved remarkable results. Currently, the size of the U.S. Bitcoin spot ETF market is approximately 150-160 trillion won, which is comparable to the entire Korean ETF market."

CEO Oh argued that the introduction of cryptocurrency spot ETFs is necessary in Korea. He pointed out, "Currently in Korea, there is insufficient legal basis for institutions to directly invest in cryptocurrency ETFs, including Bitcoin. As a result, Korea's cryptocurrency market is primarily driven by individual investors, making it difficult for institutions to enter."

He expressed concern about the widening gap between overseas and domestic markets in this regard. CEO Oh stated, "Many listed companies in the U.S. now hold MicroStrategy (now Strategy) stocks or related ETF products. As a result, institutions account for 26% of the U.S. cryptocurrency market," adding, "The Financial Services Commission has said it will gradually allow corporate participation in the cryptocurrency market, but it's disappointing that only selling is currently permitted."

Furthermore, CEO Oh predicted that cryptocurrency spot ETFs could significantly increase access to cryptocurrencies for domestic individual investors. He said, "Individuals who don't have accounts with domestic cryptocurrency exchanges, including older people, can invest in cryptocurrencies through cryptocurrency spot ETFs. This creates new demand and provides opportunities for citizens to invest in a more diverse range of products."

Meanwhile, CEO Oh also highlighted the improvement of the domestic industry as another important aspect of cryptocurrency spot ETFs. He stated, "If cryptocurrency spot ETFs are launched in Korea, many companies including custody firms and fintech startups could benefit."