Bourse is closely marking developments from the United States regulators on bitcoin exchange traded funds. This information was revealed by an official at South Korea’s only securities exchange operator, the Korea exchange. This official refused to divulge his identity and chose to be anonymous; he was cited by the local English language paper, the Korea Herald a couple of days ago
Bitcoin (BTC) Price Today – BTC / USD
Exchange traded funds are securities which track a host of assets proportionately represented in fund’s shares. So many investors and analysts have seen this as a potential development that could initiate the widespread adoption of cryptocurrencies as a passive and regulated investment instrument.
Several rejections of previous ETFs
To date, the U.S Securities and Exchange Commission has either postponed or rejected its decision when it comes to the proposed crypto related Exchange traded funds. The review period of the SEC of a single proposal is coming up in April. This prompted the KRX official to say,
“The US has been the front-runner on the cryptocurrency market and related derivatives, and there are strong voices supporting the launch of Bitcoin ETFs within the market — which is why we are observing the progress and response of the US [SEC]’s decision on Bitcoin ETFs.”
In addition, the KRX official added that the Korean exchange is extensively considering the provision of a solid bitcoin index that would be required for such ETFs to launch when they are commercialized and incorporated into the market since it would border on investor protection issues.
Local blockchain to pave the way for crypto ETF integration
The Korea Herald goes further to state in its report that South Korea’s growing blockchain space has seen the launch of blockchain ETFs and this was promoted by asset management firms and local investment banks.
A professor of the Graduate School of Information Security in Korea, Lee Kyung-ho, reportedly argued that this seeming growth in the local blockchain sector would pave the way to a crypto ETF integration. He remarks,
“With the government expanding its investment in research and development of blockchain technology, the projects are expected to minimize or eliminate the risk of integrating ETF transactions in the cryptocurrency market.”
In addition, Lee pointed out that the prospective bitcoin ETF trading depends on robust Know your Customer laws as well as Anti Money Laundering compliance. These processes have been increased in Korea especially when it comes to domestic crypto exchanges.
Recently, crypto analyst, prominent CNBC commentator and investor, Brian Kelly said he is a firm believer that a bitcoin ETF this year is impossible, but it stands a better chance next year, 2020. This analyst made the statement in an interview with Cointelegraph. Aside from his firm conviction on the improbability of a bitcoin ETF this year, Kelly also believes that the price of Bitcoin is largely undervalued. He said this while comparing the prices of last year with the current price. He also believes that this was caused by sentiments as the price is pushed below what can be considered a fair value.