Will it be allowed domestically? [Approval of Ethereum ETF③]

Following Bitcoin, Ethereum also enters the US stock market
Surprising move by the US…will South Korea reverse the ban on ‘spot ETFs’ as well?
Democratic Party plans to request reinterpretation from the Financial Services Commission next month,

[Seoul=Newsis] Reporter Kim Geum-bo = On the 11th, the domestic Bitcoin trading price exceeded 100 million won as it broke through $74,000, setting a new all-time high. A staff member at the Upbit Lounge in Gangnam-gu, Seoul, is monitoring the real-time trading price of Bitcoin. 2024.03.11. [email protected],
,
, ‘[Seoul=Newsis] Reporter Lee Ji-young = Ethereum’s spot exchange-traded fund (ETF) is scheduled to be listed on the US stock market in the second half of this year. This marks the entry of altcoins into regulated finance following Bitcoin. It is noteworthy whether South Korea will also allow the issuance of spot cryptocurrency ETFs that were previously blocked.’,
,
, ‘According to the industry on the 26th, the US Securities and Exchange Commission (SEC) approved the Ethereum spot ETF listing request (19B-4) submitted by 8 asset management companies including BlackRock, Grayscale, VanEck, and Fidelity on the 23rd (local time). It is only 4 months since the SEC approved the listing of a Bitcoin spot ETF in January.’,
,
, “However, it is expected to take several months for actual trading as approval of the registration statement (S-1) is still pending. In order for an ETF to be officially launched in the United States, both 19B-4 and S-1 approvals are required. Earlier, the listing of the Bitcoin spot ETF proceeded in the order of ’19B-4 Approval → S-1 Approval → Spot ETF Approval.'”,
,
, ‘The US decision this time is evaluated as unexpected. Until earlier this month, pessimism prevailed that Ethereum spot ETF approval in May would be difficult.’,
,
, “This is because Ethereum, unlike Bitcoin, can be seen as a ‘security’ due to its ability to stake. Staking is a form of deposit system where holding Ethereum in the blockchain network earns rewards.”,
,
, ‘However, the SEC allowed this approval with the condition of excluding staking functionality. It considered Ethereum itself not a security.’,
,
, ‘As a result, expectations are rising for the possibility of listing spot cryptocurrency ETFs in South Korea as well. The proactive stance of the United States, which directly influences domestic financial policies and investment environments, serves as a stimulus for domestic financial authorities.’,
,
, ‘Not only in the United States, but major advanced countries including the United States, Canada, and Germany are already trading Bitcoin spot ETFs. Last month, Hong Kong approved the first simultaneous listing of Bitcoin and Ethereum spot ETFs in Asia.’,
,
, “The spread of this trend to the global financial authorities could further incentivize them. If regulations continue to block the listing of spot cryptocurrency ETFs without grounds to oppose the worldwide movement, the Korean market risks being seen as a ‘Galápagos.’,
,
, ‘In fact, when the financial authorities banned Bitcoin spot ETF trading in January, criticisms followed stating that “restricting investors’ choices could contradict market economic principles.”‘,
,
, ‘Among them, the proactive head of the financial supervisory authority for virtual assets recently visited the SEC, among others. It was reported that Financial Services Commission Chairman Lim Bo-kyun, known as a pro-virtual asset figure, met with SEC Chairman Gary Gensler on the 14th (local time) about the background for the approval of Bitcoin spot ETFs.’,
,
, ‘This is interpreted to have a positive impact on the launch and public debate on spot cryptocurrency ETFs in South Korea. With the expectation that the chairman anticipated the public debate on Bitcoin spot ETFs in the second half of this year, the approval of Ethereum spot ETFs in the United States is seen as a welcome development. The upcoming enactment of the Virtual Asset Act in less than two months (July 19) is also a positive factor.’,
,
, ‘In a March interview, the chairman mentioned, “As trust is built when virtual assets enter the regulatory framework in July, discussions may open up around the second half of the year.”‘,
,
, ‘Political maneuvers are also in place. Many analysts believe that the approval of Ethereum spot ETF has been influenced by pressures from the Biden administration ahead of the presidential election. It is explained that Biden’s administration, showing a friendly attitude towards virtual assets, expressed the intention not to lose the support of 85 million virtual asset investors.’,
,
, “South Korea, which witnessed a landslide victory in the 22nd general elections, is expected to take a more proactive stance. In fact, it was reported that the Democratic Party, which made the legalization of ‘Bitcoin spot ETFs’ a key pledge, plans to request reinterpretation from the Financial Services Commission, the relevant ministry, in the middle of next month.”,
,
, ‘On the other hand, the financial authorities prohibited domestic brokerage firms from mediating in trading the Bitcoin spot ETF listed on the US stock market in January, citing the possibility of violating the Capital Markets Act. It was the first time they banned investment in ETFs listed on foreign markets.’,
,
,