Introduction
South Korea is thinking about allowing Bitcoin ETFs, but it is waiting to see what Japan does first. Right now, Japan is working on new crypto rules that could lead to Bitcoin ETFs being approved by 2025 or 2026. If Japan moves forward with this plan, South Korea might follow the same path. Many believe this could help Bitcoin become even more popular among big investors.
Why is South Korea Waiting on Japan?
South Korea has not yet approved Bitcoin ETFs because its regulators are unsure about them. They have pointed out that Japan and the UK also haven’t allowed them, so they want to see what happens first. According to Maeil Business Newspaper, South Korea’s Financial Supervisory Service (FSS) is paying close attention to Japan’s progress on Bitcoin ETF rules. Japan is expected to finalize its crypto laws in early 2025 and possibly approve Bitcoin ETFs by 2026.
Bitcoin ETFs are Growing Worldwide
Bitcoin ETFs have become very popular after the United States approved them. These ETFs make it easier for big investors to buy Bitcoin using regular stock markets. Since their approval, U.S. Bitcoin ETFs have gained over $100 billion in assets, showing strong investor interest.
After the U.S., Hong Kong approved Bitcoin ETFs in April, and now its Bitcoin ETFs hold $354 million in assets. If Japan also allows them, South Korea might not want to fall behind, leading it to approve Bitcoin ETFs as well.
Bitcoin ETFs and Bitcoin’s Price
The launch of Bitcoin ETFs has helped push Bitcoin’s price higher. After they became available in the stock market, Bitcoin jumped from $40,000 to $70,000. Later, it climbed past $100,000, helped by the “Trump trade”—a term used by investors who believe Bitcoin will grow stronger with political changes.
Experts believe Bitcoin ETFs will keep growing. State Street, a major financial company, predicts that crypto ETFs could have more money invested in them than gold ETFs by late 2025. BlackRock, another big financial firm, also sees Bitcoin becoming an important asset, especially as governments look for new ways to store value.
Conclusion: What’s Next For South Korea?
Japan’s decision on Bitcoin ETFs could affect what South Korea does next. Even though South Korea has been careful about approving these ETFs, the success of Bitcoin ETFs in the U.S. and Hong Kong could push it to change its stance. If Japan moves forward with approval by 2025 or 2026, South Korea might do the same. As more countries allow Bitcoin ETFs, Bitcoin’s price and popularity could continue to grow.
