South Korea has announced plans to launch Bitcoin spot-traded funds (ETFs) in 2026 as part of a broader digital asset reform.
South Korea Uses US & Hong Kong Crypto Spot ETFs as Reference
South Korea revealed in its 2026 Economic Growth plans to allow digital asset ETFs this year, according to Wu Blockchain, citing local media News1.
Spot ETFs are investment vehicles that allow traders to gain exposure to an underlying asset without directly owning it. Such vehicles trade in traditional markets, so local investors of ETFs tied to cryptocurrency never interact with blockchain components such as wallets and exchanges.
Instead, funds buy and hold assets on behalf of investors. In recent years, existing ETFs tied to cryptocurrencies like Bitcoin have gained traction in different regions of the world as DeFi and TradFi converge.
The US Securities and Exchange Commission (SEC) approved an ETF spot for Bitcoin in January 2024 and Ethereum in July 2024, while the Hong Kong Securities and Futures Commission (SFC) approved both in April 2024. Approvals related to altcoins such as Solana followed in 2025.
Now, it would appear that South Korea also wants to join the fray. According to the report, the country’s government has clearly identified the digital asset spot ETF markets in the US and Hong Kong as important reference areas. Plans related to spot ETFs aren’t the only thing South Korea has announced. The country’s Financial Services Commission (FSC) is also accelerating the next phase of its digital asset legislation, which will establish a framework for stablecoins.
In the East Asian bloc, some governments have already made progress on stablecoins. Hong Kong enacted its stablecoin legislation in August, while Japan saw the launch of its first yen-backed token in October. Although South Korea has set a deadline of 2026, it is not known when existing ETFs will be launched. Therefore, it remains to be seen what plans the government will unveil next and what assets other than Bitcoin will be covered.
Speaking of Bitcoin ETFs, these funds have been facing an exit from the US recently, as data from SoSoValue shows.
How the spot BTC ETF netflow has changed over the last couple of years | Source: SoSoValue
From the chart, it can be seen that the weekly Bitcoin spot ETF has been negative since the cryptocurrency’s decline began in October. There were a few weeks that saw good value, but the net entry scale remained limited.
Last week’s netflow stood at $431 million, which means US funds continue to bleed.
BTC price
Bitcoin erased some of its recent gains as its price returned to $90,500.
Looks like the price of the coin has gone down recently | Source: BTCUSDT on TradingView
Featured image from Dall-E, chart from TradingView.com
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