Seo Yoo-seok, chairman of KOFIA, advocates for the introduction of exchange traded funds (ETFs) in South Korea this year.
The chairman notes significant interest in digital assets from investors over 50.
Seo suggests that a regulated ETF could offer a safer way for older investors to access digital assets.
The chairman of the Korea Financial Investment Association (KOFIA) Seo Yoo-seok has called for the launch of Bitcoin and Ethereum exchange-traded funds (ETFs) in South Korea this year. He made this statement during a press event on February 5, emphasizing the need for regulated investment products that provide safer access to digital assets for investors.
The KOFIA chair pointed out that while digital assets are often seen as appealing mainly to younger generations, older individuals – specifically those over the age of 50 – also show considerable interest and possess substantial capital. However, he questioned whether they should enter the market directly, suggesting that allowing them to invest through regulated ETFs based on Bitcoin and Ethereum would be a prudent move. He :
“Everyone thinks of virtual assets as an investment target for the MZ generation (Millennials + Generation Z), but people in their 50s and 60s also have a lot of interest in and demand for virtual assets. Their funds are larger than those of the MZ generation, but I wonder if it’s right to let them go straight to virtual assets. That’s why I think we need to list an ETF that is recognized worldwide, at least based on Bitcoin and Ethereum, in our market so that investors can invest comfortably and with peace of mind.”
“Everyone thinks of virtual assets as an investment target for the MZ generation (Millennials + Generation Z), but people in their 50s and 60s also have a lot of interest in and demand for virtual assets. Their funds are larger than those of the MZ generation, but I wonder if it’s right to let them go straight to virtual assets. That’s why I think we need to list an ETF that is recognized worldwide, at least based on Bitcoin and Ethereum, in our market so that investors can invest comfortably and with peace of mind.”
Regulatory Challenges and the Push for Crypto ETFs
The Chairman pointed out US President Donald Trump’s favorable stance toward virtual assets and the possibility of making Bitcoin a national strategic asset. These developments could prompt other countries, including South Korea, to accelerate their approach to crypto ETFs. Although South Korea has maintained a cautious regulatory stance toward cryptocurrency, the country’s Financial Services Commission does not classify cryptocurrencies as eligible securities under the Capital Markets Act, preventing the approval of ETFs linked to digital assets. Seo said:
“Looking at overseas cases, I wanted to say that they have been releasing ETFs that track virtual assets since the beginning of their term. However, they hesitated because the government’s authoritative interpretation did not recognize them as investable assets under the Capital Markets Act.”
“Looking at overseas cases, I wanted to say that they have been releasing ETFs that track virtual assets since the beginning of their term. However, they hesitated because the government’s authoritative interpretation did not recognize them as investable assets under the Capital Markets Act.”
Recently, South Korea’s top financial regulator, the FSC, has been planning to ease restrictions on institutional participation in digital asset trading. The agency aims to collaborate closely with the Digital Asset Committee and initially grant access to non-profit organizations before expanding further.
The country has become a major force in the crypto sector, being one of the most active crypto markets, with its national currency surpassing the US dollar as the top fiat used in crypto trading during early 2024. However, Anti-Money Laundering requirements, which mandate exchanges to form official partnerships with domestic banks to provide crypto-to-fiat services, have forced South Korea’s crypto market to rely largely on individual investors.