Odaily Planet Daily News: South Korea's financial research institute said in its latest report that the introduction of cryptocurrency spot ETFs may bring more troubles than benefits to the country's economy. "Allowing (such) products may lead to side effects such as inefficient resource allocation, increased risks related to cryptocurrencies in financial markets, and weakened financial stability," the Korea Institute of Finance (KIF) said in a report last Sunday. The agency explained that crypto ETFs may cause the crypto market to intercept a large amount of cash flow from the local financial market, resulting in reduced investment in the local industry. KIF added that this may make local financial markets more vulnerable to crises in the crypto industry, leading to increased investor distrust of the market and regulators. The report finally concluded: "At this point, we believe that the introduction of (cryptocurrency spot ETFs) will do more harm than good." Nevertheless, the think tank acknowledged that if the underlying cryptocurrency develops into a more clear and unique financial asset, the crypto ETF will become a high-quality means of storing value. (The Block)
