South Korea Eyes Bitcoin ETFs in 2025 if Japan Leads #CriptoNews

The race for Bitcoin Exchange-Traded Funds (ETFs) in Asia is heating up, with South Korea closely observing Japan’s next moves regarding cryptocurrency legislation. Both countries are considering embracing Bitcoin ETFs, which would be a significant development for the region’s digital asset markets. If Japan moves forward with its legislation for Bitcoin ETFs in 2025, South Korea is likely to follow suit, as the South Korean government monitors Japan’s stance on the matter.

Japan’s discussions regarding virtual asset regulation are already in progress, with a framework expected to be drafted in the second half of 2025. By 2026, Japan’s National Assembly is set to vote on the proposed legislation, which could pave the way for Bitcoin ETFs to be approved. This development has led to speculation that South Korea, which has previously expressed hesitation about crypto ETFs, might take a more favorable stance if Japan leads the charge.

According to a report from South Korea’s Maeil Business Newspaper, the country’s financial regulators are closely monitoring Japan’s evolving cryptocurrency policies. The Financial Supervisory Service (FSS) in South Korea has taken a keen interest in how Japan is opening up to the idea of crypto ETFs. Historically, South Korean regulators have been cautious about such products, referencing the slow adoption of Bitcoin ETFs in Japan and the UK as reasons for hesitation. However, the shifting stance in Japan may prompt South Korea to reconsider its position.

Kim So Young, the Vice Chairman of South Korea’s FSS, emphasized the country’s careful review of Bitcoin ETFs in February 2025. She pointed out that despite certain countries like Japan and the UK holding back, the global crypto market is witnessing greater acceptance of these products. Kim’s comments suggest that South Korea may be preparing to make a more progressive decision in the near future, provided that Japan moves first.

The potential approval of Bitcoin ETFs in South Korea would mark a significant turning point for the nation’s cryptocurrency landscape. These products allow investors to buy and sell Bitcoin through traditional stock markets, making it easier for both retail and institutional investors to access the cryptocurrency. The U.S. was the first to approve Bitcoin ETFs, and this decision has already had a substantial impact on the market. In 2024, U.S. spot Bitcoin ETFs saw assets under management (AUM) soar to over $100 billion, reflecting growing investor confidence in the products.

Following the U.S., Hong Kong also approved Bitcoin ETFs in April 2024, further legitimizing the asset class in the eyes of institutional investors. Hong Kong’s Bitcoin ETFs now boast an AUM of $354 million, showing strong growth since their introduction. Bitcoin’s value surged dramatically after the U.S. approval, rising from around $40,000 to $70,000 per coin, and even surpassed $100,000 following the so-called ‘Trump trade’ in late 2024.

The growing momentum behind crypto ETFs has caught the attention of major financial institutions. State Street, a leading global financial services provider, predicts that the AUM for crypto ETFs could surpass those for precious metals ETFs by late 2025. BlackRock, the world’s largest asset management firm, also forecasts that Bitcoin’s role as an alternative reserve asset for nation-states, alongside concerns about U.S. fiscal debt, will further drive Bitcoin’s adoption in the coming years.

As the global appetite for Bitcoin ETFs increases, South Korea’s decision to approve them could have far-reaching implications for the Asian crypto market. The country’s regulators will undoubtedly keep a close eye on Japan’s legislative developments, as both nations look to position themselves as leaders in the cryptocurrency space. If Japan takes the first step, South Korea will likely follow, marking a significant milestone in the growing acceptance of Bitcoin ETFs across Asia.

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