Financial Investment Association Proposes Bitcoin Exchange Traded Funds (ETFs)

Seo Yoo-seok, president of the Financial Investment Association, said, "We need an environment that allows Bitcoin Exchange Traded Funds (ETFs) to be listed as financial products"

Financial Investment Association President Seo Yoo-seok said, "We need an environment where Bitcoin Exchange Traded Funds (ETFs) can be listed as financial products so that people can invest in them with confidence and comfort."

At a New Year's press conference of the Financial Investment Association held in Yeouido, Seoul on the 5th, Chairman Seo said, "The launching of the second Donald Trump administration in the U.S. is expected to further revitalize the global virtual asset market."

He added, "We will continue to propose to support the institutionalization of token securities and the permitting of virtual asset tracking ETFs so that Korea does not lag behind this trend."

It is interpreted that U.S. President Donald Trump has shown a willingness to keep pace with the revitalized market trend as he has shown a favorable attitude toward virtual assets, such as saying that he will stockpile Bitcoin as a national strategic asset.

Chairman Seo emphasized the need to introduce virtual asset ETFs, saying, "It used to be thought of as an investment target only for the MZ generation, but now the interest and demand of those in their 50s and 60s who have assets are increasing."

On the same day, Chairman Suh presented five key tasks: increasing the capital market value, improving digital infrastructure, creating a national asset formation and venture capital supply environment, enhancing the global competitiveness of the financial investment industry, and protecting investors and managing risks.

In particular, the public offering fund listed trading service, which was designated as an innovative financial service in November last year, showed his willingness to support it to be launched within the second quarter of this year.

Chairman Seo said, "If the public offering fund is easily sold at a low cost, it will quickly switch from the existing seller-centered market to the investor-centered direct investment market," and regarding LPs, he added, "LP is very important, and about 20 companies are requesting to list products in addition to the three confirmed companies (Mirae Asset Securities, Korea Investment Securities, and SK Securities)." He continued, "We are contacting companies that can do additional LPs."

Regarding the Individual Comprehensive Asset Management Account (ISA), he said, "We will actively support the increase of the payment and non-taxation limits and the introduction of new types of ISAs."

Concerning the criticism that the stepping fund, which was launched last year to raise the return on private pensions, did not meet expectations, he said, "It is not known much because it is still in the early stages of its launch, and the inflow of products seems to be slow," and added, "We will make efforts to develop a short route to the securities company's mobile trading system (MTS) for publicity."

In addition, Chairman Suh mentioned tasks such as the rationalization of the dividend tax and approval of the Comprehensive Asset Management Account (IMA), support for the rationalization of private equity funds, and strengthening financial investment education, saying, "We will do our best to open the spring of the capital market and take a new leap forward."