South Korean Company Urges Authorities to Launch Bitcoin ETF

The Korea Financial Investment Association (KOFIA) has declared its intention to vigorously pursue the approval of cryptocurrency exchange-traded funds (ETFs) within the South Korean stock market in 2025.

KOFIA Chairman Seo Yoo-seok’s assertive stance, voiced at the 2025 Press Corps New Year’s Meeting, reflects a shift in perspective regarding integrating cryptocurrencies into mainstream finance.

Chairman Seo explicitly advocated for the introduction of a spot index ETF based on Bitcoin and Ethereum, highlighting the growing demand for such a product and its potential benefits.

KOFIA Chairman Calls for Bitcoin ETF

Chairman Seo’s call for cryptocurrency ETF approval is significantly influenced by the prospective US administration’s perceived pro-cryptocurrency stance. He cited speculation that a second Trump presidency might even designate Bitcoin as a national strategic asset.

“I believe a Bitcoin and Ethereum-based spot index fund (ETF) should be launched on the domestic stock market this year. There’s even speculation that a second Trump administration might designate Bitcoin a national strategic asset. Looking at international examples, I wanted to point out that many countries have offered ETFs tracking virtual assets since their inception,” Seo said.

The Chairman acknowledged past hesitancy from regulatory uncertainty, specifically the lack of official recognition of cryptocurrencies as investable assets under the Capital Market Act.

However, he emphasized the widespread interest in virtual assets, extending beyond the typically associated “Millennial and Generation Z demographics.”

He argued that the substantial investment potential held by older generations necessitates a regulated and accessible investment vehicle. Hence, he called for Bitcoin and Ethereum-based ETFs to provide all investors with a secure and transparent entry point.

KOFIA Investment Plans

Beyond cryptocurrency ETFs, Chairman Seo also highlighted the notable success of the Stepping Fund, a specialized retirement fund launched by KOFIA in September 2024. With average returns exceeding 3.5% and top-performing funds achieving over 7%, the fund has demonstrated strong performance in its initial months.

KOFIA plans to enhance the fund’s visibility and accessibility by streamlining access via securities company mobile trading systems, expanding bank sales channels, and considering it a default option for retirement pensions.

Furthermore, KOFIA proposes expanding the Individual Savings Account (ISA) program to include minors, establishing a “Junior ISA.” This initiative builds upon the existing ISA’s success, boasting 5.87 million subscribers and 32 trillion won in subscriptions, cementing its position as a cornerstone of national financial investment.