South Korea's FSC Warns Against Brokering US Bitcoin ETFs; Ether ETFs Await Approval
Summary:
South Korea's financial regulator, the FSC, discourages local firms from brokering American Bitcoin ETFs trading on the spot market, citing a potential violation of virtual asset regulations. However, as crypto regulations in South Korea are still being developed, the Commission intends to study foreign regulations, particularly from the US. Meanwhile, the recent legal approval for trading Bitcoin ETFs by the US SEC resulted in a trading volume exceeding $4.5 billion on the first day. Ether ETFs are expected to follow, with a decision on BlackRock's application awaited by May 23rd, 2024.
South Korea's top financial authority, the Financial Services Commission (FSC), has cautioned domestic businesses about facilitating trades for American Bitcoin (BTC) exchange-traded funds (ETFs) operating on the spot market. On January 12, the FSC circulated a condensed press release indicating that local securities companies handling transactions for foreign-based spot Bitcoin ETFs could potentially breach existing virtual asset regulations and the Capital Markets Act. However, it mentioned that cryptocurrency rules in South Korea are in the midst of being developed and fine-tuned. In step with this, the Commission is set to examine regulations concerning such developments abroad, pointing to updates in the U.S. as a case in point.
In a landmark decision, the U.S. Securities and Exchange Commission (SEC) gave its nod for the trading of spot Bitcoin ETFs on January 10, with the first trades occurring a day later on January 11. Information collated by Cointelegraph discloses that accumulated volume from ten different spot Bitcoin ETFs surpassed an impressive $4.5 billion on the first day. Investment manager Timothy Peterson of Cane Macro calculates that this level of activity corresponds to roughly 47,000 Bitcoin — estimated at $2.1 billion at today's prices — being required for purchase on the spot market.
Looking ahead, Ether spot ETFs are next on the list. As a case in point, BlackRock submitted an application for an Ether spot ETF in November 2023. The SEC is due to make a decision by May 23, 2024, and many in the crypto space hold the opinion that the introduction of Bitcoin spot ETFs bodes well for an affirmative ruling for an Ether ETF.
Published At
1/12/2024 5:22:33 PM
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