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The call for a Bitcoin exchange traded fund (ETF) has been a longstanding request in the crypto sphere. With winter rampaging the crypto market, investors are being compelled to turn to safer means of trading within the crypto sphere including exchange traded funds. Still, regulators from all around the world are yet to approve a Bitcoin ETF.
As a commission with investor’s safety at heart, the reasons for been skeptic all along is due to high price volatility (which gives room for price manipulation) and lack of standard regulatory structures in the crypto market. Nonetheless, tons of crypto exchanges have continued to submit their applications to roll out a Bitcoin ETF. The US Securities and Exchange Commission (SEC), for instance, is yet to endorse or reject their requests. News has it that the SEC conducts extensive screening and questioning on each crypto exchange. We hope an exchange meets the desired requirement.
Away from that, the South Korean government has taken a special interest in the crypto market and is making active efforts to ensure a safer environment for a Bitcoin ETF. However, they are still waiting on the US SEC’s decision as they happen to be the front-runners in the crypto market. The US SEC is expected to give a response by April this year about another Bitcoin ETF application. An official with the national main bourse operator at Korea Exchange (KRX) explained that they are yet waiting to see how the US SEC would decide come April. With the role the US SEC plays in the crypto market and strong voices in support of a Bitcoin ETF, they are positive of a good result.
He went further to state that KRX is constantly looking for ways to make the market better and safer. They are currently researching for ways to provide the solid index required to launch an ETF.
Experts predict that South Korea’s interest in blockchain is the key to having the first ETF as they are constantly seeking for ways to build a safe platform for Bitcoin ETFs. A professor at the Korea University’s Graduate School of Information Security assured the general public that expansion of government’s research and development in blockchain technology is expected to drastically reduce the risk factors in integrating ETF transactions in the crypto market. To this end, the government has mandated crypto exchanges to adopt the know-your-customer (KYC) and anti-money laundering (AML) rules.
In a related story, local investment banks and asset management firms are reportedly managing ETFs that are not subjected to Financial Supervisory Service. A spokesman for Mirae Asset Global Investment confirmed that they have been managing an overseas Blockchain ETF known as Horizons Blockchain but are yet to conduct any Bitcoin-related transaction.