Can spot Bitcoin exchange-traded funds (ETFs) cross the threshold to be listed on Korea's domestic stock market? With the government signaling amendments to the Capital Markets Act centered on permitting listings, experts anticipate significant volatility in product launch timelines depending on the revision status of subordinate and linked regulations.
Lee Jun-seok, Head of ETF Product Strategy at KB Asset Management, stated during a panel discussion at the "Origin Seoul 2026" Bitcoin conference hosted by OriginX on the 1st that "(The index) required for tracking the ETF is already prepared." He added, "While investor interest tends to concentrate when Bitcoin prices rise, all asset management companies have completed their preparations."
Regarding procedures after regulatory adjustments, he said, "I expect Korea Exchange will announce a Bitcoin index and multiple asset management firms will establish ETFs, similar to the launch of single-stock leverage ETFs. Since certain infrastructure must be built in accordance with legal amendments, the preparation period may take some time."
Previously, spot Bitcoin ETFs emerged as a key topic for both asset management and virtual asset industries due to their potential to activate virtual asset investments through financial institution accounts.
The executive noted, "Given the high level of trust and interest in Bitcoin, once spot ETFs are launched, they could establish themselves as a long-term sector within asset management." He further explained, "Considering aspects such as corporate accounting reports, companies can more easily access Bitcoin trading through ETFs rather than direct transactions."
On the anticipated market impact, he said, "Since investment channels in Bitcoin will open not only in general accounts but also in retirement pension and individual pension accounts, a massive influx of capital could occur if a virtual asset bull market returns."
Han Seo-hee, a lawyer at Kwangjang Law Firm, stated, "On a scale of 0 to 100, we have already reached above 50." She explained that the unwritten rule prohibiting price separation (the ban on traditional finance and virtual asset joint operations) is being dismantled, and following the listing of Bitcoin ETFs in major markets after their debut in the U.S. stock market in 2024, such listings have continued to follow.
The lawyer pointed out that changes are inevitable for launching spot Bitcoin ETFs, citing the Financial Services Commission's advisory interpretation that virtual assets do not qualify as underlying assets for ETFs under the Capital Markets Act, as well as current regulations prohibiting trust companies from handling virtual assets. She also noted that the criteria for "credible indices" usable in ETFs remain a point of industry debate.
The lawyer added, "Although legal hurdles exist, it has been reported that there were attempts to pilot the introduction of ETFs through measures such as the Financial Regulatory Sandbox and Innovative Financial Services. If the financial authorities demonstrate determination, this is not impossible; thus, (the launch) hinges on policy direction."
Kim Gyu-yoon, CEO of Happy Block, stated, "To establish an ETF, large-scale purchases of Bitcoin are required, but since domestic miners are virtually absent, foreign exchange transaction regulations must be improved." He further explained, "From the perspective of Delivery versus Payment (DVP), Bitcoin can be received at an astonishing speed, but delays in SWIFT (international interbank communication network) transfers have posed problems." Happy Block is a domestic virtual asset service provider (VASP) targeting corporate clients.
Kim (CEO) said, "Overseas institutional investors operating prime brokers or over-the-counter (OTC) desks are introducing exchanges for institutional investors to resolve such issues and are building credit systems that can operate post-collateral mechanisms." He added, "Miners also play a crucial role in the supply chain."
Origin Seoul 2026, Korea's first "Bitcoin-only" conference, opened today at Sky31 Convention in Seoul Lotte World Tower. The event will continue until the 2nd.
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